60-Month vs 72-Month Car Loan: Which is Better?
Choose a 60-month car loan for your 2021 BMW M3. This option saves $216 in interest on a $40,000 loan at 7% APR. You pay off the car in five years instead of six.
Check these numbers for a $40,000 loan at 7% APR in zip code 19308:
| Loan Term | Monthly Payment | Total Paid | Interest Paid |
|---|---|---|---|
| 60 months | $792 | $47,520 | $7,520 |
| 72 months | $663 | $47,736 | $7,736 |
The 60-month loan costs $216 less overall. Shorter terms cut interest because lenders spread charges over fewer months. You build equity faster with a 60-month loan. Your BMW M3 holds value well. Cars drop 20-30% in the first year. A shorter loan keeps you ahead of that loss.
Current rates make 60 months even better. New car loans average 7.01% for 60 months. Rates rise to 7.24-7.6% for 72 months. Used 2021 BMW M3 loans face the same or higher rates.
Pros and Cons
60-Month Loan:
- Saves $216 or more on interest.
- You own the car free and clear in five years.
- Cuts risk of owing more than the car's value.
- Higher payments may strain your cash flow.
72-Month Loan:
- Lowers payments by $129 a month.
- Eases budgets for gas or insurance.
- Adds $216 or more in interest.
- Keeps you in debt for six years.
- Warranty might end before you pay off the loan.
In 19308, PA taxes and fees add up quick. Lower payments help short-term. But luxury cars like the M3 can trap you upside down. You end up owing more than the car is worth.
Tips to Choose and Save
- Test your budget with a loan calculator. Check if $792 fits.
- Put 20% down. An $8,000 down payment cuts interest a lot.
- Shop rates. Credit unions offer rates below 7%.
- Plan to keep the car six years or more? Pick 72 months. Trade early? Choose 60.
- Make extra payments on a 72-month loan. Turn it into 60 months.
- Add full ownership costs. Budget $1,500 a year for insurance and $500 for maintenance on your M3.
Sidekick runs these numbers for your 2021 BMW M3 and zip code. Compare options in seconds.
Pick 60 months if payments fit your budget. You save money long-term.