There are a lot of decisions when it comes to financing a new vehicle at Hall Honda Virginia Beach. Should you buy or lease? How much can you afford? How long do you want to finance your car?
Our Honda finance experts at Hall Honda Virginia Beach are outlining some of these choices to help you determine your ideal route.
How Long Do Loans Last?
There isn’t a set length for all loans. You can work with our team to determine the best length for you. Typically, auto loans are measured in years and known as the “term” of your loan. Your predetermined term can range anywhere from two to eight years, depending on your needs.
How Does the Length Affect Your Loan?
The length of your loan plays a big part in how much (or little) you pay for the duration of your loan. When you finance a vehicle, it includes an interest rate. Therefore, the longer your loan is, the more interest you will pay, which would increase your total investment.
Of course, the more time you have to spread your loan out, the smaller your monthly payments can be.
- Long term = small monthly payments, but more interest
- Short term = larger monthly payments, but less to pay overall
Is Leasing the Same?
Securing an auto lease is not entirely different than financing, but there are certainly differences. By leasing a vehicle, you will almost always have a more affordable monthly payment. Leasing a vehicle means you only have it for a portion of its lifespan, so you are only paying a portion of the total investment. Typically, leases last anywhere from one to three years.
Want to learn more? Our Honda dealership in Virginia Beach, VA is ready to help! Reach out to our team today!
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