Auto loans over 60, 72, 84 months: which term should you choose?
Auto loans over 60, 72, 84 months: which term should you choose?
Posted on November 2, 2026
An auto loan term is an important consideration.
As a rule, the shortest term with monthly payments you can include in your budget remains the best option for you.
Summary
To choose the right auto loan term, focus on the total cost and the interest you will pay based on the length of the loan.
A longer term usually means lower monthly payments, but overall, it means you will have to more for the same vehicle, since you will pay more interest.
Auto loans are generally offered over 60, 72, or 84 months. Other options, such as a 96-month term, are sometimes possible.
60, 72, or 84 months: what are the key differences?
The length of an auto loan affects more than just the size of the monthly payment. Shorter and longer terms come with several important differences.
60 months: higher monthly payment, lower total cost
A 60-month auto financing term requires higher monthly payments, which can be harder to cover depending on your monthly budget and the vehicle's price.
However, at the same interest rate, it is among the terms with the lowest total cost. A shorter repayment period lets you pay less interest over the full life of the loan.
72 months: compromise between payment and total cost
A 72-month auto financing loan can offer a favourable compromise between more reasonable monthly car payments and a competitive overall cost.
84 months: lower payment, more interest and greater risk
An 84-month car financing contract is a perfect solution if you want lower monthly payments. You will pay more interest over the total duration of the loan, but lower payments are always appreciated.
Comparison table: 60 vs. 72 vs. 84 months
To help you find the best auto financing term for your situation, here is an example comparing a car's total cost and monthly payments by loan length:
| Features | 60-month auto financing | 72-month auto financing | 84-month auto financing |
|---|---|---|---|
| Vehicle price | $40,000 | $40,000 | $40,000 |
| Interest rate | 8% | 8% | 8% |
| Monthly payment | $811.06 | $701.33 | $623.45 |
| Total cost | $48,663.60 | $50,495.76 | $52,369.80 |
No matter the loan length, always avoid choosing a vehicle that is over your budget to maximize your chances of approval for an auto loan.
Why are 72-month terms and longer auto loans riskier?
Long-term auto loans such as 72 and 84 months are riskier because they increase the vehicle's total cost and expose the buyer to greater depreciation.
Depreciation, negative equity, and changing vehicles before the loan ends
With a longer auto loan term, you can more easily find yourself in a negative equity situation, which means your car is worth less than what you still owe on the loan.
This can cause problems if you want to sell the car, since the sale proceeds are not enough to cover the remaining balance, which complicates your finances.
Switching vehicles while a loan is still active on the old car makes a new loan harder to obtain and can also limit your car budget based on your income in the future.
The 96-month auto loan: when should you be especially careful?
Some lenders and programs offer a 96-month auto loan. With a loan this long, the total cost of auto financing is very high, and you face even greater depreciation.
A 96-month auto loan is rarely the best car financing term, but every situation is different.
How to choose the best car financing term?
To choose the length of financing for a used car, consider your monthly budget as well as the financing options available to you.
Do not be tempted only by a lower monthly payment. Always factor in auto loan interest to better plan your future budget.
Generally, the best term is the shortest one that still offers monthly payments suited to your budget, whether you buy new or used.
If you still have questions, do not hesitate to consult auto financing specialists to find a solution tailored to your needs.
Financement Automobile Montréal is at the centre of a network of more than 25 trusted lenders, which allows us to help you find advantageous auto financing solutions, no matter your financial situation.
FAQ
Is it better to finance a car over 60 or 72 months?
Financing a car over a shorter period helps you avoid higher total costs and risks linked to vehicle depreciation.
Generally, it is always better to choose the shortest term possible, as long as the monthly payments fit your budget.
Is it bad to finance a car over 84 months?
Not necessarily. A lower monthly payment, like the one offered by a longer loan term, gives you more flexibility in your daily life.
What is the maximum length of an auto loan?
The maximum term is generally 96 months, but it also depends on the lender. Inquire about this. Our advisors are here to help.
What term should you choose to finance a used car?
It depends on your financial situation. A shorter term helps you avoid paying too much interest, but many prefer lower monthly payments.