Q for the Bear

[milsaps118]

I got pre-approved thru my CU for an auto loan with the option of 2 different terms. 1) 60mo @ 6.9 or 2) 72mo @8.25

 

I'm a landscaper so most of my salary is made during the summer months and during winter I have a limited income that is just enough to cover my living expenses with a little left over at the end of the month.

 

Here's my Q and thought. Would it be a bad idea to take the 72mo term with lower monthly payments and pay extra towards principle during my peak earning months and when money is tight during winter I can still afford to make "Just" the original monthly note.

 

My thought is that it would be nice to have a little breathing room during the winter going with the 72 v 60. The 60 could get me in a pickle and I hate to ask for a deferment or worst case scenario fall behind on payments. Althought the rate is a little higher and the term is 12mo longer I am determined to PIF in 60mo or slightly sooner and feel I can easily do it.

 

Thanks in advance and have a Happy 4th to all!!!

[MarvBear]

1) 60mo @ 6.9

 

 

take the red pill.

[hurricanesfans27]

1) 60mo @ 6.9

 

 

take the red pill.

 

ditto

[milsaps118]

Thanks for the advice!!!!!

[mk_378]

No matter how quickly you actually pay it, signing the 72 month loan will cost you more due to its higher APR. The payments also aren't that much lower. Instead of only paying a lot extra on the loan, also put some money in the bank during the summer so you can be sure to cover the car payments in the winter.