Should I get a 60 or 72 month car loan?
Pick a 60-month car loan if you can handle the payment. It cuts total interest by $800 or more on a $30,000 loan at 5% APR. You pay about $566 monthly versus $491 for 72 months. According to Edmunds' 2025 data, 60-month loans average 5.4% APR on $38,285 financed. This builds equity faster and lowers risk if you sell early.
72-month loans ease monthly budgets but cost more overall. They often carry higher rates like 5.5-7.6% APR. On that same $30,000 loan, you pay $4,795 in interest over 72 months, up from $3,968 for 60 months. "72-month loans leave many drivers underwater longer due to fast depreciation," says the Sidekick Research Team, based on analysis of 1,200 Michigan owner records as of March 2026.
Quick Comparison Table
Here's how they stack up for a $30,000 loan in areas like 48094 (typical rates 4.75-5.5%):
| Loan Term | APR | Monthly Payment | Total Interest |
|---|---|---|---|
| 60 months | 5.0% | $566 | $3,968 |
| 72 months | 5.5% | $491 | $4,795 |
Data from lender averages. For $40,000, expect $755 vs $654 monthly. Longer terms mean you owe more as cars lose 20-30% value in year one.
When to Choose Each
Go 60 months if:
- You plan to keep the car 5 years or less.
- You trade vehicles often.
- You want to refinance or prepay easily.
Choose 72 months only if:
- Monthly payments must stay under $500.
- You keep cars 7-10 years.
- You build an emergency fund first.
Start with 60 months and prepay $50-100 extra when possible. This mimics a shorter term without locking you in. Check your budget: car payments should not exceed 15% of take-home pay.
In Michigan's 48094 area, factor local taxes and insurance. Average full coverage runs $1,800 yearly. Use Sidekick to run your numbers with real owner data. It shows your true ownership costs, including fuel and maintenance for typical cars.
Action Steps
- Get preapproved from 3 lenders: banks, credit unions, online.
- Use a loan calculator for your exact amount.
- Aim for 20% down to shrink the loan.
- Sidekick scores your best term based on driving habits and local costs.
Shorter loans win for most drivers. They save money and give freedom.