Can You Get an 84-Month Car Loan?

An 84-month car loan is a vehicle financing agreement with a repayment period of 84 months, or seven years. This type of loan functions like other auto loans, where a borrower finances the purchase of a new or used vehicle and repays the principal amount along with interest over the agreed-upon term. This extended period spreads the cost of a vehicle over a longer duration, influencing both the monthly payment and the total cost of borrowing.

Availability of 84-Month Car Loans

84-month car loans are increasingly available. This loan term, along with even longer options, has become more common as vehicle prices have risen, prompting consumers to seek lower monthly payment options. Data from the first quarter of 2025 indicates that nearly one in five new-car buyers opted for an 84-month loan. This marks a notable increase.

Consumers can typically find these extended-term loans through various financial institutions, including banks, credit unions, and online lenders. Many dealerships also offer or facilitate 84-month financing options directly or through their lending partners. This trend reflects a market adjustment, helping buyers manage the cost of increasingly expensive vehicles by making monthly payments more manageable.

Financial Characteristics of Extended Loan Terms

While an 84-month car loan can offer lower monthly payments, it results in a significantly higher total amount paid over the life of the loan due to accumulated interest. For example, a $35,000 loan at a 9% interest rate over 84 months could accrue approximately $12,302 in interest, compared to $8,593 for a 60-month term at the same rate. Lenders often charge higher interest rates for longer terms, as these loans are considered to carry increased risk, further contributing to the total interest paid.

A longer loan term also increases the likelihood and duration of negative equity. Negative equity, often called being “underwater” or “upside down,” occurs when the outstanding loan balance exceeds the vehicle’s market value. Cars depreciate rapidly, with new vehicles potentially losing 20% of their value upon leaving the dealership and up to 30% within the first year. Since early loan payments primarily cover interest, a longer term means the principal balance reduces slowly, keeping the borrower in a negative equity position for an extended period. This situation can create financial challenges if the borrower needs to sell or trade in the vehicle before the loan is significantly paid down.

An 84-month loan commits the borrower to debt for an extended seven-year period. Over this duration, vehicles age, accumulate mileage, and typically require more maintenance and repairs. If the car is still under a loan when it begins needing significant repairs, this adds to the financial burden beyond the monthly payment.

Lender Considerations for Approval

Lenders evaluate several factors to determine approval for an 84-month car loan, assessing the applicant’s ability and willingness to repay. A strong credit score is a primary consideration, as it indicates a borrower’s history of managing financial obligations responsibly. A higher credit score often leads to more favorable interest rates and terms.

Income stability and the applicant’s debt-to-income ratio are also closely scrutinized. Lenders want to ensure a consistent income stream sufficient to cover the monthly loan payments in addition to existing debts. Generally, financial institutions are comfortable with a certain percentage of pre-tax monthly income allocated to a car payment, often around 14-16%.

The amount of the down payment plays a significant role in approval and loan terms. A larger down payment reduces the amount financed, lowers the lender’s risk, and can help secure better rates. The specific vehicle being financed is also assessed, including its age and value, as these factors influence the loan-to-value ratio and the collateral’s worth. Lenders may have minimum loan amounts for 84-month terms, such as a requirement for a financed amount of $20,000 or greater for used vehicles, and may impose age or mileage restrictions on the vehicle.