The more you know about your loan and lease options, the more confident you’ll feel when the time comes to choose your next vehicle. At Heritage Volkswagen Parkville, you’ll find all the information and resources you need to make an informed decision every time. Learn about the benefits and drawbacks of 72-Month Volkswagen financing with help from our expert team.
Drawbacks of 72-Month Financing
In addition to the down payment, the term length is one of the most important factors to consider when it comes to vehicle financing. The first thing you’ll want to account for is higher interest costs, because lenders see longer term lengths as riskier. They’ll typically assign higher interest rates, and because you will be making more payments over time, you’ll pay higher accrued interest costs over the length of the term.
That’s not your only risk. Another is ending up upside down on your loan. This means you owe more on the car than it’s worth. Longer term lengths mean a greater risk of this happening, increasing your financing vulnerability in the event the vehicle is stolen or totaled.
Benefits of 72-Month Financing
That said, there are also some benefits to consider when it comes to longer term lengths. To begin with, you’ll have lower monthly costs assuming the same down payment, because a longer term length allows you to spread the remaining loan cost over more monthly payments. Smaller monthly costs, more vehicles will be available within your budget. When you take out a longer-term loan, you can more easily pick out a model you really love.
Finance Your Next Volkswagen Vehicle in Parkville, MD
The Volkswagen financing process is made smooth and easy here at Heritage Volkswagen Parkville. We’ll help you determine the term length that best suits your needs and put you behind the wheel of a vehicle you love. Get started at our dealership today.
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