When you apply for a Lexus financing plan, you need to choose the term length that fits your needs. Longer term lengths reduce your monthly payments, but shorter term lengths mean you pay less interest. As part of our Lexus Financing Tips series, the Lexus of Jacksonville team has pulled out the key considerations for loan term length.
Longer Term Lengths
If you’re aiming to keep your monthly auto payments as low as possible, you might look at a longer term. This would generally be 60 to 72 months, but could go higher depending on the model and your credit. The vehicle price is split over a longer time, so your monthly premium is lower. However, you’ll pay far more in interest over the length of your loan.
Shorter Term Lengths
You may also find auto loans with shorter term lengths, ranging from 24 to 36 months. These loans are generally harder to secure and have higher monthly payments, meaning that they aren’t available for every driver. However, you’ll own the car faster this way, and you won’t pay as much in interest.
Balanced Term Lengths
For most drivers, we recommend opting for a medium-length loan term, which lasts for 48-60 months. This provides the best balance between your monthly statement and the amount of interest you pay, meaning that you won’t put as much stress on your finances over time. Because both long and short loans have their issues, aiming in the middle is the best choice for the average person.
Book a Lexus Financing Appointment in Jacksonville, FL
Are you ready to get behind the wheel of a new luxury car? Our Lexus financing team can help you determine which term length is best for you. Contact Lexus of Jacksonville today to book a session with our auto loan experts.
