Should I Get a 60 or 72 Month Auto Loan?
Pick the 60-month auto loan for your 2025 Volkswagen Golf GTI. You save $1,000 to $1,500 in interest. You own the car outright in five years instead of six.
A new Golf GTI costs $32,000 to $35,000 in zip code 01760. Put 10% down. You finance $28,800 to $31,500. Rates now stand at 7% for 60 months or 7.6% for 72 months.
Here is a comparison for common loan amounts:
| Loan Amount | Term | APR | Monthly Payment | Total Interest |
|---|---|---|---|---|
| $30,000 | 60 mo | 7% | $594 | $5,640 |
| $30,000 | 72 mo | 7.6% | $514 | $6,998 |
| $32,000 | 60 mo | 7% | $634 | $6,040 |
| $32,000 | 72 mo | 7.6% | $550 | $7,560 |
The 72-month loan lowers payments by $80 a month. You pay $1,358 more in interest on $30,000. Shorter loans build equity faster. Cars lose value quick. A long loan leaves you upside down. You owe more than the car worth. Five-year terms match car warranties. Lenders offer better rates on shorter loans. You get 0.5% to 1% lower APR.
Why 60 Months Wins
You pay less overall. You save $1,000 to $1,500. You finish payments in five years. This beats six years. Your Golf GTI holds value better early on. You avoid loan-to-value gaps. Credit improves faster with paid-off debt.
When 72 Months Makes Sense
Pick 72 months if $600 payments hurt your budget. Lower payments free cash for emergencies or savings. Add extra payments to fight interest. Pay $100 more each month on a 72-month loan. You pay it off near 60 months. You save big on interest.
Tips to Decide and Save
- Check your budget. Can you afford $600 monthly? Try a loan calculator.
- Shop rates. Credit unions offer lower ones than banks. Target under 7%.
- Put 10% to 20% down. This cuts your loan size and payments.
- Prepay often. Most loans allow it without fees.
- Buy from dealers with strong financing. Compare offers.
Use Sidekick to track total costs for your Golf GTI in 01760.
Run numbers with your exact price and credit score. Most buyers pick 60 months. You save money and drive debt-free sooner.