MOTRIX.
APP
|
← Full glossary
FINANCE

Loan Term

How many months you have to pay off the loan. Longer term = lower payment but more total interest.

// Why it matters

The loan term is the length of the auto loan in months. Common terms: 36, 48, 60, 72, 84 months. Longer terms reduce your monthly payment but dramatically increase total interest paid AND increase the period you're underwater on the loan. The auto industry has been pushing 84-month loans hard because they enable lower payments on more expensive cars — but you'll pay 30-50% more in total interest vs. a 60-month loan. Rule of thumb: 60 months max for a new car, 48 months for used.

Skip the glossary entirely.

Motrix's AI agents know every term on this page and use them against the dealer on your behalf. $0 today, $399 only when your deal closes.

Start a deal — $0 until you sign →