1. What is an 84-Month Auto Loan?

An 84-month auto loan is a 7-year car loan that spreads payments over a longer period, resulting in lower monthly payments but higher total interest costs compared to shorter-term loans.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

• \( PMT \) — Monthly payment amount
• \( P \) — Principal loan amount
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• 84 — Number of monthly payments

Explanation: The formula calculates the fixed payment required each month to pay off the loan in exactly 84 months, accounting for compound interest.

3. Understanding Your Payment

Details: While longer terms reduce monthly payments, they significantly increase total interest paid. An 84-month loan typically costs more in interest than a 60-month loan for the same amount.

4. Using the Calculator

Tips: Enter the loan amount and annual interest rate. The calculator will show your monthly payment, total repayment amount, and total interest paid over 84 months.

5. Frequently Asked Questions (FAQ)

Q1: Are 84-month auto loans a good idea?
A: They can make payments more affordable but result in higher total costs. Consider if you'll keep the car that long and if you'll be upside-down on the loan.

Q2: What credit score is needed for an 84-month loan?
A: Generally 660+, but terms vary by lender. Lower scores may get approved but with higher rates.

Q3: How does this compare to shorter loan terms?
A: Example: $30,000 at 5% for 84 months = $423/month ($35,532 total) vs 60 months = $566/month ($33,960 total).

Q4: Can I pay off an 84-month loan early?
A: Yes, but check for prepayment penalties. Early payment saves interest.

Q5: What's the average interest rate for 84-month loans?
A: Rates vary (2023 average ~5-8% for prime borrowers), typically higher than shorter-term loans.