How Long Should A Car Loan Be? 60 vs. 72 Months & More

February 24, 2026 · 10 min read

The Car Loan Length To Fit Your Needs

Choosing the right car loan term is a crucial part of the car-buying process, as it directly impacts your monthly payments and the total cost of the loan. Understanding how long a car loan should be depends on several factors, including your financial situation, the car's value, and your long-term goals. Whether you’re considering a short-term loan or a longer-term option, finding the right balance can help you manage your monthly budget while minimizing interest costs.

It’s essential to evaluate your loan options carefully for the perfect ride. From shorter loan terms with higher monthly payments to longer periods with lower payments, the decision can shape your overall financial well-being. By exploring the pros and cons of each term length from Preston Chrysler Dodge Jeep Ram of Wilmington, you'll be better equipped to select a loan that aligns with your needs and ensures a smooth car ownership experience. Get in touch with our finance department today!

Understanding Car Loan Term Lengths

What Is the Average Car Loan Length?

On average, determining how long a car loan should be typically ranges between 60 to 72 months. This time frame has become increasingly common as car prices rise, making longer loan terms more appealing to buyers looking for manageable monthly car payments. However, understanding the implications of the 60- vs. 72-month car loan is essential when choosing a loan term that fits your needs.

For those looking for a short-term loan, terms usually range from 36 to 48 months. These often come with higher monthly payments but lower interest costs over the life of the loan. On the other hand, longer-term loans, such as 72-month or even 84-month loans, allow for lower monthly payments but significantly increase the total amount paid due to higher interest rates over a longer period of time. Selecting the right term should factor in both your financial situation and how much car you can realistically afford.

Factors That Influence Loan Term Decisions

Several factors play a crucial role in determining the ideal car loan term for you. One of the most significant considerations is your financial situation. This includes evaluating your savings, monthly budget, and overall income. For example, if you have a steady income and can comfortably handle higher monthly payments, a shorter loan term may be a good idea. Conversely, if your budget is tighter, a longer loan term may help reduce the immediate financial burden, even if it increases the total cost of the loan.

Another key factor for how long a car loan should be is whether you’re financing new vehicles or used vehicles. New cars tend to have better interest rates compared to used car loans. However, used vehicles generally cost less up front, which could allow you to opt for a shorter loan term. Additionally, the trade-in value of your current car and the size of your down payment can influence your decision. A large down payment reduces the loan balance, which can make shorter terms more feasible.

Car prices and interest rates also have a major impact on how long a car loan should be. Rising car costs can push buyers toward longer-term loans to achieve a lower monthly payment. However, longer loan terms often come with higher interest rates, which increase the total interest paid over the life of the loan. Loan fees, annual percentage rate (APR), and other financing options, like home equity loans or credit cards, should also be considered when evaluating how long a car loan should be.

Short-Term vs. Long-Term Auto Loans

Why Short-Term Auto Loans May Be a Good Idea

Short-term auto loans, typically lasting 36 to 48 months, can be an excellent option for buyers who want to save money in the long run. One of the biggest advantages is the lower total interest costs. Since the loan is repaid over a shorter time frame, the lender has less opportunity to collect interest, resulting in significant savings. Additionally, short-term loans often come with better interest rates, making them an attractive choice for borrowers with a solid credit history.

Another benefit is the faster payoff time, which reduces the risk of negative equity. Negative equity occurs when the loan balance exceeds the car’s value, a situation that can arise in longer-term loans. With a shorter term, you’re less likely to owe more than the car is worth. This also minimizes the need for additional financial products like gap insurance, which is often required for long-term loans to cover any shortfall in case of a total loss. Moreover, shorter loan terms typically lead to lower car insurance premiums, as the insurance company views shorter repayment periods as less risky.

Longer-Term Loans: Pros and Cons

Longer-term loans, such as 72-month or 84-month auto loans, are appealing for buyers who prioritize lower monthly payments. These loans can make a car purchase seem affordable up front, especially if you’re trying to fit the loan payments into a tight monthly budget. However, the benefits of longer-term loans come with notable trade-offs.

One of the primary disadvantages is the increased overall cost of the loan. While the monthly payments are lower, the extended length of the loan term means paying more in total interest over time. In fact, the longer the loan term, the higher the interest payments you’ll make, which can significantly increase the total amount paid for the vehicle. Additionally, longer loan terms carry a higher risk of negative equity, particularly for vehicles that depreciate quickly. If you decide to sell or trade in the car before the loan is paid off, you may still owe money on the loan.

Long-term auto loans may also limit your financial flexibility. For instance, unexpected repair bills or changes in your financial situation could make it challenging to keep up with payments over a longer period. Additionally, buyers should be cautious about being locked into a loan for a longer period of time, as this can restrict their ability to upgrade to a new vehicle or adapt to changing needs.

How to Choose the Right Auto Loan Term

Evaluating Your Financial Situation

Choosing how long a car loan should be starts with a clear evaluation of your financial situation. Begin by assessing your income, monthly budget, and any savings account reserves. A solid understanding of your finances will help you determine how much car you can afford and what kind of loan payments fit comfortably within your budget. For instance, if you have disposable income and can handle higher monthly payments, opting for a shorter loan term could save you money in the long run.

Another critical factor of how long a car loan should be is your credit history. Borrowers with strong credit scores are often eligible for better interest rates, which can make even shorter loan terms more affordable. On the other hand, if your credit history is less favorable, you may face higher interest rates, making a longer loan term more practical. Using an auto loan calculator or payment calculator can be invaluable during this process, allowing you to compare different loan offers and see how factors like term length, interest rates, and loan balance impact your monthly car payment and total cost.

Balancing Loan Term and Total Costs

When choosing between a short-term and a long-term situation for how long a car loan should be, it’s essential to consider the trade-off between monthly payments and total interest costs. Shorter loan terms typically come with higher monthly payments, but they save you money over time by reducing the total interest paid. For example, a 36-month loan will cost less in interest compared to a 60-month or 72-month loan, even if the monthly payments are higher.

On the flip side, longer loan terms reduce your monthly payment, making it easier to fit into your monthly budget. However, the extended time frame increases the total interest paid over the life of the loan, adding to the overall cost. Additionally, longer-term loans may come with higher interest rates, further increasing the loan’s cost. It’s crucial to weigh these factors carefully, as the wrong choice could strain your finances in the long run.

Additional costs should also be factored into your decision. For instance, repair bills and maintenance costs are more likely to arise if you keep the car for an extended period, which is common with long auto loan terms. Exploring options like refinancing loans or using home equity to pay off a portion of the loan could provide some flexibility. Similarly, understanding the potential need for GAP insurance or higher car insurance premiums with longer loans is important when calculating the total cost of ownership.

60- vs. 72-Month Car Loan: Which Option Is Better?

Deciding between a 60-month loan and a 72-month loan depends on your priorities, financial situation, and the car’s value. A 60-month loan is often considered a balanced choice, offering a shorter repayment period while keeping interest costs relatively low. With this option for how long a car loan should be, you can pay off the loan faster and reduce the risk of negative equity, where the loan balance exceeds the car’s value. However, the higher monthly payments associated with a 60-month loan may strain your budget, especially if you’re financing a more expensive car.

In contrast, a 72-month loan provides the benefit of lower monthly payments, making it a good option for buyers who need to maintain a tighter monthly budget. This extended term for how long a car loan should be can make higher car prices more manageable up front, but it comes with drawbacks. The longer period increases the total interest paid, raising the overall cost of the loan. Additionally, the risk of negative equity is higher with a 72-month loan, particularly for vehicles that depreciate quickly. Buyers should also consider the potential need for GAP insurance, which adds to the total cost of financing.

When deciding between these two options for how long a car loan should be, it’s important to evaluate your financial goals and how long you plan to keep the car. If you’re planning a long-term car purchase and want to minimize monthly payments, a 72-month loan might work. However, if you prefer to minimize interest costs and pay off the loan faster, a 60-month loan is likely the better choice. Tools like an auto loan preapproval or a payment calculator can help you compare these options and determine the best fit for your next car purchase. We offer these tools on our website, or you can contact our finance department to learn more.

Find the Best Auto Loan at Preston Chrysler Dodge Jeep Ram of Wilmington

When deciding on how long a car loan should be, it’s crucial to weigh the advantages and disadvantages of short-term and long-term loans. Short-term loans are ideal for those who can handle higher monthly payments and want to minimize total interest costs. They also reduce the need for financial products like GAP insurance and can help you avoid long-term negative equity. However, they may require a more significant financial commitment up front, which could strain your monthly budget.

On the other hand, long-term auto loans offer the advantage of lower monthly payments, making them suitable for buyers with a tighter monthly budget or those looking to finance a more expensive car. While these loans can make car ownership more accessible initially, they often result in higher overall costs due to increased interest payments over a longer loan term. Additionally, factors like repair bills and depreciation may add further expenses over time, making it essential to carefully evaluate your financial situation and goals.To get the best deal for your situation, explore various financing options, including car leases, new car loans, and used car loans at Preston Chrysler Dodge Jeep Ram of Wilmington. Get in touch with us today!

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Jul 07, 2026

Most Affordable Family Vans That Still Give You Space & Comfort

The Best Family Van Without the Big Price Tag When you're shopping for a family vehicle, affordability isn't just about the sticker price. It's about finding something that makes everyday life easier, whether that's loading groceries, buckling kids into car seats, navigating crowded parking lots, or packing for a weekend getaway. Today's family vehicles offer more technology, safety features, and flexible seating than ever before. If you're searching for the best affordable family van, one model stands out: the Chrysler Pacifica. It delivers the practicality families need, the safety technology parents want, and the versatility that makes daily life run smoother, all without requiring a luxury-sized budget. Visit Preston Chrysler Dodge Jeep Ram of Wilmington to explore our affordable minivans and family SUVs today! 1. Chrysler Pacifica: Best Overall Affordable Family Vehicle The Chrysler Pacifica earns the top spot because it was designed around real family life. From school drop-offs and grocery runs to road trips and sports practices, the Chrysler Pacifica handles the everyday challenges families face better than almost anything else in its class. Its combination of flexible seating, advanced safety technology, and family-focused convenience features makes it one of the smartest values on the market. What truly sets the Chrysler Pacifica apart is how much functionality it packs into a single vehicle. Available features like FamCAM, Amazon Fire TV, and a 19-speaker Harman Kardon® Premium Audio System help transform long drives from stressful to enjoyable. Standout Features Available 360° Surround View Camera Available ParkSense® Front and Rear Park Assist Blind Spot Monitoring and Rear Cross Path Detection Adaptive Cruise Control with Stop and Go Pedestrian Automatic Emergency Braking LaneSense® Lane Departure Warning with Lane Keep Assist Stow 'n Go® seating system Available FamCAM interior camera Seating for up to eight passengers Best For Families who want the most features, flexibility, and convenience for their money. Bottom Line If you're looking for one vehicle that can comfortably handle family road trips, daily commuting, carpools, and bulky cargo, the Chrysler Pacifica is hard to beat. 2. Jeep Grand Cherokee L: Best Three-Row SUV Alternative Not every family wants a minivan, and that's where the Jeep Grand Cherokee L comes in. This three-row SUV combines family-friendly passenger space with the rugged styling and elevated driving position many buyers prefer. With seating for up to 7 passengers and up to 84.6 cu.ft. of cargo space, it offers impressive versatility for an SUV. The Jeep Grand Cherokee L also delivers modern technology and advanced safety features. The available Uconnect® 5 system, large touchscreen display, Adaptive Cruise Control, Active Lane Management, and available Night Vision technology help make family travel safer and more convenient. Of course, there are trade-offs. Compared to a true minivan, getting into the third row isn't quite as easy, and cargo flexibility is more limited when all seats are occupied. Standout Features Seating for up to seven passengers Extended wheelbase for improved interior space Available 360° Surround View Camera Available Night Vision technology Uconnect® 5 infotainment system Strong blend of comfort, technology, and capability Best For Families who need occasional third-row seating but strongly prefer an SUV over a minivan. Bottom Line The Jeep Grand Cherokee L offers a great balance between family practicality and SUV appeal, making it a strong option for buyers who prioritize style and versatility. 3. Jeep Grand Wagoneer: Best for Premium Family Space For large families seeking maximum space and upscale comfort, the Jeep Grand Wagoneer delivers a premium experience. With seating for up to eight passengers, a spacious cabin, and luxurious materials throughout, it's designed for families who spend a lot of time on the road and want every trip to feel first class. Advanced digital displays, premium connectivity features, and more than 170 available safety and security features help create a driving experience that's both sophisticated and family-friendly. Standout Features Spacious three-row seating Premium interior materials and finishes Advanced technology and connectivity Exceptional road-trip comfort Available luxury amenities throughout the cabin Best For Large families who want full-size SUV space and premium comfort. Bottom Line The Jeep Grand Wagoneer delivers incredible space and luxury, but buyers focused strictly on value will likely find the Chrysler Pacifica offers more practicality for significantly less money. What Does "Affordable" Really Mean? Affordability is about much more than the lowest monthly payment. The true cost of ownership includes fuel expenses, insurance rates, maintenance costs, depreciation, and long-term reliability. A vehicle that costs less upfront can quickly become more expensive if it lacks the convenience, safety features, or flexibility your family needs. That's why features like sliding doors, easy third-row access, advanced driver-assistance systems, and flexible cargo space matter so much. They affect your family's experience every single day. The best affordable family vehicle is the one that delivers the most value—not simply the lowest price. Final Verdict: Where Most Families Should Start While each vehicle on this list offers something different, the Chrysler Pacifica remains the strongest overall choice for most families. Its combination of advanced safety technology, available FamCAM, flexible Stow 'n Go® seating, available ParkSense® features, and everyday usability helps solve the challenges families face every day. Whether you're managing school drop-offs, weekend road trips, or large cargo loads, the Chrysler Pacifica delivers exceptional value where it matters most. If you're beginning your search for an affordable family vehicle, the Chrysler Pacifica is the benchmark against which every other option should be measured. Head to Preston CDJR of Wilmington to shop our most affordable family vans today! FAQs About Affordable Family Vans What is the best affordable family van? The Chrysler Pacifica is one of the best affordable family vans thanks to its flexible seating, advanced safety features, spacious interior, and family-focused technology, all at a competitive price point. Is a minivan better than a three-row SUV for families? For many families, yes. Minivans typically offer easier third-row access, sliding doors, more cargo flexibility, and greater passenger comfort than most three-row SUVs. What makes the Chrysler Pacifica a good family vehicle? The Chrysler Pacifica offers available Stow 'n Go® seating, FamCAM, seating for up to eight passengers, and a variety of driver-assistance features that help make daily errands, carpools, and road trips more convenient. What should I look for in an affordable family vehicle? Beyond the purchase price, families should consider safety technology, passenger space, cargo capacity, fuel efficiency, maintenance costs, and overall versatility to ensure they get the best long-term value. SHOP NOW

Jun 17, 2026

Best Budget Compact SUVs for Price, Features, and Everyday Driving

Compact Without Compromise Finding the right SUV doesn't have to mean sacrificing features, capability, or comfort. For many drivers, the goal is simple: find the best budget compact SUV that delivers everyday practicality, modern technology, and long-term value without stretching the budget. Today's compact SUV segment is more competitive than ever, but one vehicle continues to stand out from the crowd. The Jeep Compass offers the perfect balance of affordability, capability, and convenience, making it a top choice for drivers searching for the best budget compact SUV for commuting, family adventures, and everything in between. If you've been asking, "What is the best compact crossover SUV?", the answer may be closer than you think. Head to Preston Chrysler Dodge Jeep Ram of Wilmington to explore your options today! Why the Jeep Compass Is the Best Budget Compact SUV The Jeep Compass has earned its reputation as one of the most versatile and capable compact SUVs on the market today. Unlike many competitors that focus solely on fuel economy or styling, the Jeep Compass delivers a complete package that appeals to a wide range of drivers. Whether navigating city streets, tackling winter weather, or heading off the beaten path for a weekend getaway, the Jeep Compass is designed to handle it all with confidence. What truly makes the Jeep Compass the best budget compact SUV is its ability to offer premium features and Jeep capability at an affordable price point. Drivers don't have to move up to a larger or more expensive SUV to enjoy advanced technology, available four-wheel-drive systems, and a comfortable interior. Performance That Goes Beyond Expectations Every Jeep Compass is powered by a responsive 2.0L Turbocharged I4 engine that produces 200 horsepower and 221 lb.-ft. of torque. This combination provides strong acceleration while maintaining the efficiency that compact SUV shoppers expect. For drivers who encounter snow, rain, gravel roads, or rugged terrain, the available Jeep Active Drive Low 4x4 system on Jeep Compass Trailhawk models adds another level of confidence. Unlike many crossovers that simply offer all-wheel drive, the Jeep Compass delivers genuine Jeep capability, handling challenging conditions with ease. Available features include: Jeep Active Drive Low 4x4 System Trail Rated® Trailhawk capability Selec-Terrain® Traction Management System Hill Descent Control Up to 2,000 lbs. of towing capability These features help separate the Jeep Compass from many other affordable small compact SUVs on the market today. Modern Technology Comes Standard Drivers searching for the best compact crossover SUV often place technology near the top of their wish list. The Jeep Compass delivers with an impressive suite of connected features designed to make every drive more enjoyable. Inside the cabin, drivers will find the Uconnect® 5 infotainment system paired with a responsive 10.1-in. touchscreen. Wireless Apple CarPlay® compatibility and Android Auto™ integration make it easy to stay connected while on the road. Available technology features include: Wireless Apple CarPlay® and Android Auto™ Wireless smartphone charging Voice recognition capability Alpine® Premium Audio System Adaptive Cruise Control with Stop and Go Active Lane Management Rear Cross Path Detection ParkSense® Rear Park Assist These advanced features help make the Jeep Compass feel like a premium SUV while maintaining its position as one of the best budget compact SUV options available. Comfort and Versatility for Everyday Driving A great SUV should be ready for everything from weekday commutes to weekend road trips. The Jeep Compass delivers the flexibility drivers need with seating for up to five passengers and practical cargo space for groceries, luggage, sports equipment, and more. Available heated front seats and a heated steering wheel add extra comfort during colder months, while thoughtful interior storage solutions help keep daily essentials organized. For many shoppers, the Jeep Compass strikes the perfect balance between compact maneuverability and interior practicality. That's one reason it continues to rank among the most desirable affordable small compact SUVs available today. Jeep Cherokee: A Great Alternative for Drivers Who Need More Space While the Jeep Compass is a top choice for shoppers seeking the best budget compact SUV, some drivers may benefit from a larger vehicle. The Jeep Cherokee offers additional passenger room and cargo capacity, making it a strong option for growing families or frequent travelers with extra gear. Highlights of the Jeep Cherokee include: More passenger and cargo space Family-friendly interior design Available advanced safety technology Comfortable ride quality Flexible storage solutions For drivers who need more room than a traditional compact SUV offers, the Jeep Cherokee delivers excellent versatility while maintaining the capability expected from a Jeep. How to Choose the Best Budget Compact SUV Price is important, but true value extends beyond the sticker price. When comparing compact SUVs, it's important to consider factors such as: Fuel efficiency Safety features Technology offerings Reliability Resale value Ownership costs Available warranty coverage The best vehicle is often the one that delivers the most features and capability for the money. That's exactly why so many shoppers consider the Jeep Compass the best budget compact SUV on the market today. Discover the Best Budget Compact SUV at Preston CDJR of Wilmington Drivers searching for the best budget compact SUV don't have to look far. Whether you're comparing the best compact crossover SUV options or exploring affordable small compact SUVs for your next vehicle, the Jeep Compass and Jeep Cherokee deserve a place at the top of your list. Visit Preston CDJR of Wilmington today to explore our current inventory, compare available trim levels, and take a test drive. The right compact SUV for your lifestyle may be waiting on the lot right now. FAQs About Budget Compact SUVs What Is the Best Compact Crossover SUV for Families? Many drivers searching online ask the same question: What is the best compact crossover SUV for everyday family life? The answer often comes down to value. Families need a vehicle that offers safety, comfort, technology, and versatility without exceeding their budget. The Jeep Compass checks all of those boxes. Its advanced safety technologies, spacious interior, and available four-wheel-drive capability make it a smart choice for busy families seeking dependable year-round transportation. Which is the best SUV on a low budget? The best low-budget SUV is the one with the lowest total cost of ownership for your needs, not just the lowest MSRP. Focus on realistic transaction price, safety, fuel economy, and standard driver-assist technologies. What is the best affordable subcompact SUV? The best affordable subcompact SUV is usually the model with a low starting price, solid standard safety tech, and enough rear-seat and cargo space for your routine. Buyers should also compare fuel economy and insurance costs, because small size alone does not guarantee low ownership costs. What is the best value for money for a small SUV? Value for money usually means balancing price, safety, fuel economy, resale, and standard equipment. A slightly higher trim can be smarter if it reduces option spending and improves everyday comfort or traction. SHOP NOW

Jun 15, 2026

American-Made Vehicles at Preston Chrysler Dodge Jeep Ram of Wilmington

Celebrating America's Legacy on Four Wheels Few things capture the American spirit quite like hitting the open road. The freedom to explore new destinations, visit loved ones, and create unforgettable memories has always been woven into the American story. And for generations, American-made vehicles have helped make those journeys possible. As America celebrates its 250th anniversary, communities across the country are coming together to honor the people, places, and innovations that have shaped our nation. From hometown parades and family road trips to major celebrations across the nation, this milestone is a reminder of the pioneering spirit that continues to define America. At Preston Preston Chrysler Dodge Jeep Ram of Wilmington, we're proud to represent an iconic automotive brand built on American ingenuity, craftsmanship, and innovation. Whether you're looking for a hardworking truck, a capable SUV, a family-friendly vehicle, or a luxury driving experience, you'll find American-made excellence throughout the Chrysler, Dodge, Jeep, and Ram lineup. Built on American Innovation Combining refined luxury with modern technology, Chrysler, Dodge, Jeep, and Ram deliver premium comfort and sophisticated design for drivers seeking an elevated experience. With America marking 250 years of history, many families are planning getaways to national landmarks, historic destinations, and community celebrations. Whether you're heading to a nearby festival, exploring scenic backroads, or embarking on a cross-country adventure, the right vehicle can make all the difference. From powerful SUVs to luxurious family haulers, Preston Chrysler Dodge Jeep Ram of Wilmington is proud to offer a wide selection of vehicles designed to help you make the most of every mile. Proud to Serve Our Communities At Preston Chrysler Dodge Jeep Ram of Wilmington, we're honored to serve drivers throughout our communities while representing a brand that has helped shape the American automotive industry. As we celebrate this historic anniversary, we invite you to visit our dealership, explore our lineup of American-made vehicles, and discover the perfect companion for your next adventure. Here's to 250 years of innovation, exploration, and the freedom of the open road, and to the journeys still ahead. SHOP NOW

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