There are many perks to 72-month Subaru financing, but smart shopping means weighing the drawbacks too. It’s important to know your options before you decide which is right for you. Heritage Subaru of Catonsville shares the pros and cons of 72-month financing.
Pros
There are notable benefits when you stretch your auto loan out over 72 months. Since you have six years to pay off the loan, that will make your monthly payments much smaller than a shorter-term loan would have, assuming the same down payment. You can keep more of your money with you, so you can keep earning interest on it or always have it available for expenses. Plus, with smaller payments, you might feel more comfortable buying a better car with more of the features and amenities you want.
Cons
Interest continues to accrue on your loan until it’s paid off, so you’ll pay more interest on a long loan. Plus, lenders usually give higher interest rates to long loans, because they’re perceived to be riskier. That will also translate to a higher overall cost. It’s also important to consider the car’s depreciation. Since new vehicles depreciate quickly, and you’re only making small monthly payments, you can easily become upside down in a 72-month loan.
Financing vs. Leasing
There are also benefits to choosing Subaru leasing rather than financing. Since leasing is essentially a long-term rental, you only have to pay for the vehicle’s estimated depreciation during your lease. Leases will often have even lower monthly payments and upfront costs. However, leases have stricter credit requirements, alongside mileage allowances and customization restrictions, so keep that in mind.
Apply for Subaru Financing in Baltimore, MD
Subaru 72-month financing has many perks, although it’s not right for everyone. Our financial experts would be happy to sit down with you to discuss your options. Visit Heritage Subaru Catonsville to get started today!
