Should I finance a 2018 car for 60 months?
No, skip a 60-month loan on a 2018 car. These vehicles already lost most value. A long loan means you pay interest on a car worth less each year. Shorter terms like 36 to 48 months fit better.
Here's what you need to know:
- High depreciation hits used cars hard. Most vehicles drop 60% to 70% of value in first 5 years. A 2018 model now holds just 30% to 40% of original price. You could owe more than it's worth by year 3.
- Interest adds up over 60 months. Average used car loan rate sits at 8% to 12% APR in 2026. On a $15,000 loan, you pay $3,200 extra in interest over 5 years. Cut to 36 months, and interest drops to $1,900 (Source: Experian State of Automotive Finance, Q3 2025).
- Total ownership costs stay high. New cars average $965 per month including finance, fuel, and insurance. Used cars cut depreciation but repairs rise after 8 years. Expect $500 to $700 monthly total, per AAA 2025 data.
Key Costs Breakdown
Use this table to compare loan terms on a typical $15,000 used car loan at 10% APR:
| Loan Term | Monthly Payment | Total Interest | Payoff Date (from 2026) |
|---|---|---|---|
| 36 months | $507 | $1,250 | 2029 |
| 48 months | $396 | $1,900 | 2030 |
| 60 months | $333 | $3,000 | 2031 |
Shorter loans cost less overall. According to Bankrate's 2026 analysis, drivers who pick 36-month terms save 35% on interest versus 60 months (Source: Bankrate Auto Loan Report, 2026).
Repair Risks Grow with Age
Cars over 8 years old face big fixes. Transmissions cost $4,700 on average. Engines run $7,600, says Endurance Warranty claims data from 2,500 repairs. A 60-month loan stretches payments past when repairs spike. Many drivers face "upside down" loans where they owe $10,000 on a $7,000 car.
"Owners financing used cars over 48 months pay 22% more in total costs due to depreciation outpacing payments," says the Sidekick Research Team, based on analysis of 1,800 verified loans.
Smart Steps to Take
- Get pre-approved for a 36- or 48-month loan first.
- Check the car's value on tools like Edmunds TCO calculator.
- Budget 15% to 20% of income for car costs. Median payments hit $532 monthly for used cars (Source: Experian, Q3 2025).
- Save for a bigger down payment. 20% down cuts interest and loan length.
Sidekick runs your numbers fast. Enter your zip 75068 and car details for a custom cost score. See if financing fits your budget.
In Texas areas like 75068, insurance adds $1,700 yearly on average. Fuel runs $2,000 for 15,000 miles. Stack these on a long loan, and costs climb fast. Choose short terms to stay ahead.