• Short term loan: A short term loan is usually for less than 3 years and is a good option if you want to save money in the long run. A smaller duration implies low interest rate and less amount repaid at the end of the loan tenure. However, you may need to pay more in terms of monthly repayments.

• Long term loan: These can be defined as the loans that last for more than 3 years. These are generally preferred by borrowers who want to pay low monthly payments, despite of the fact that they end up paying more as the interest. Long term loans can either be secured or unsecured.

• Age: The age of the borrower has a major influence on loan term that he may be eligible for. Whether you are getting a loan from a bank or credit union in Killeen, make sure you inquire about any specific age criterion that they may have. Most lenders do not provide loan term loan to individuals who are nearing their retirement or have already exceeded that age. In such cases, you can either opt for a short term loan or inquire if you can allot a younger applicant to make the remaining payments post your retirement.

• Your income: Your income is also an important factor in determining the amount of loan repayments you can conveniently afford every month. To select the most suitable loan tenure, keep in mind your total income from all sources and the financial liabilities you have to bear, i.e., insurance payments, kids’ education, home rent etc. Therefore, you should choose a plan that allows you to easily pay off the loan in the minimum time period while retaining sufficient savings for unexpected circumstances, such as a medical emergency.

• Amount of loan required: The higher amount of money you borrow, more will be your monthly installments and interest payments. Hence, you should try to apply for a smaller loan so that you can pay the least amount of money at the end of the loan tenure. This way, you will not only be able to pay off the loan early, but also make considerable savings on interest payments.

• Rate of interest: Comparing the interest rate quoted by the credit union is also important while deciding on the loan term. Depending upon whether you are opting for a variable or fixed interest rate, your overall loan payments may vary. For variable interest loans, you may have to pay higher monthly installments in case of a long term loan. This may be due to the fluctuations in the market rate over the span of years. Short term loans, however, may not be affected much in this case.

Auto financing has become the need of the hour. In the present times, when the vehicles have become so costly that one cannot afford to pay such a huge amount at once, auto financing comes to the rescue. It helps us in owning the vehicle of our choice in short span of time while paying for it later.

Many financial institutions and banks offer auto loans at competitive prices and reasonable rate of interests. Though proper research and verification is a must, you should always keep your financial credit strength in mind while opting for a particular type of auto loan.

The loan tenure plays a significant role while deciding for the respective auto financing which is to be finalized. Auto financing can be availed for short term tenure which would lead to high monthly charges with comparatively less rate of interest. You can also get auto loans for the long term which would result in high total interests being paid up with comparatively low monthly installments.

As, in both the situations, one has to compromise with one thing or the other, the best option you can opt for is the 72 month Auto Financing, which confirms to be the most profitable deal for you. As the tenure is neither too short nor too long, it proves to be the most lucrative deal you can ever think of.

72 month Auto Financing has various benefits, which establishes it to be the most appropriate choice for your auto loan. The diverse benefits are as follows:

• It is beneficial in the sense that the monthly payments are fixed to be low, which suits your budget as well as pocket.
• You can always opt for refinancing the 72 month auto loan, as it may benefit you from the changes which are brought by the lending rates.
• It is the best alternative for those people who have fixed income and small savings, and are not able to invest in luxury cars or vehicles of their own choice due to monetary constraints. Thus, the feel of owning a car of your choice gives you immense satisfaction and happiness.    

For more details on wide range of auto loans and auto financing in all credit situations, you can contact us at Greater Central Texas Federal Credit Union, 3305 E Elms Road, Killeen, TX 76542 or call at 254-690-2274.

72 Month Auto Financing - Secured Auto Loan