Find the Right Auto Loan Term Length for Your Budget
How to Choose Loan Term Length
When purchasing a new vehicle, deciding which term length you will choose to pay off your loan is an important consideration. Longer terms may offer lower monthly payments, which can be attractive but will result in higher interest over the life of your loan. Shorter terms offer lower interest overall, but the higher monthly payments could be harder to manage within particular budgets. Also, don't forget to factor in additional expenses like auto insurance, gas, and maintenance that will need to be included in your monthly budget.
Using our Calculator to Compare Monthly Payments by Term
You will need the following information:
- Vehicle Purchase Price
- Cash Rebate or Cash Back
- State Sales Tax
- Trade-In Value
- Amount Owed on Trade-In
- Interest Rate
- Down Payment Amount
Auto Loan Term Lengths
Auto loan term lengths can range from 12 to 72 months—or even longer, depending on your lender. The following are the most common auto-term lengths with brief explanations to help determine the pros and cons of each:
- 12 Months: Higher monthly payments with less interest overall.
- 24 Months: Lower payments than 12 months, but increased interest.
- 36 Months: A balanced term length with moderate payments and interest.
- 48 Months: Lower monthly payments with more interest over time.
- 60 Months: Lowest monthly payments but the highest interest.
Additional Expenses That Influence Your Monthly Auto Payment
Your monthly auto payment is only one part of what you will pay each month for your vehicle. Consider the following additional items that will impact the total cost of vehicle ownership per month and be sure to factor them into your budget:
- Insurance: Comprehensive, collision, or liability insurance is typically required by state law and can significantly increase monthly costs, depending on the type of vehicle purchased, where you live, and your driving record.
- Maintenance: Regular maintenance, like oil changes and tire rotations, can help avoid costly repairs down the road.
- Gas: Fuel costs are impacted over time by various global and economic influences, so choosing a car with a reputation for good gas mileage and efficient fuel consumption is wise.
Common Questions
Apply through online banking, our mobile app, our website loan application, stop by a branch, or give us a call at 800-968-8628.
You bet! Applying for a motorcycle loan with UMCU is a breeze! The process is almost identical to applying for a vehicle loan. We get you pre-approved for free so you can shop with confidence knowing how much you can afford!
Absolutely! Purchasing a boat with UMCU is simple and stress-free. The loan process is just like applying for a vehicle loan and we'll even pre-approve you for free, so you can shop with confidence and know exactly what fits your budget.
Already have a boat in mind? Great! Just let us know during pre-approval, and we'll help you move forward smoothly.
We can finance motohome loans up to $350,000. If the motorhome costs more than that, you would be responsible for any balance over $350,000.
For example: if you wish to purchase a motorhome for $400,000, UMCU would finance $350,000 and the remaining $50,000 would have to be paid for up front.
Enjoy the great outdoors with an recreation vehicle (RV) loan from UMCU!
Whether you're dreaming of exploring off-road trails on an ATV or cruising the waterways on a jet ski, UMCU has the perfect RV loan for you.
Our easy and fast application process makes it simple to finance your next adventure. Enjoy:
- Flexible loan terms to fit your budget
- Competitive rates* to save you money
- No prepayment penalties
- Automatic payment options for hassle-free payments
Apply through Online Banking, our Mobile App, our website loan application, stop by a branch, or give us a call at 800-968-8628.
Yes, we've partnered with National RV Detroit and TerryTown RV to make it easy to get the Travel Trailer or Motorhome of your dreams! Enjoy our competitive rates with the convenience of financing right at the dealership.
- National RV Detroit
- 44700 N. I94 Service Dr., Belleville MI 48111
- Phone: 734-439-3400
- TerryTown RV
- 7145 S. Division Ave., Grand Rapids MI 49548
- Phone: 616-455-5590
The maximum total allowed for secured loans like a vehicle loan (not including real estate) at UMCU is $350,000 per member.
Apply through Online Banking, our Mobile App, our website loan application, stop by a branch, or give us a call at 800-968-8628.
No, it's not required — but if you have the boat's hull identification number (HIN), feel free to include it.