Consumers may consider a 144-month auto loan to finance the purchase of classic and exotic cars. Such vehicles could carry a sales price above $100,000. Auto loans with 12-year terms may make it easier for consumers to buy ultra-luxury brands like Aston Martin, Ferrari, and Lamborghini.
Buying a six-figure car is a personal choice, and getting a 144-month auto loan to finance that car might make sense for some borrowers. Car loans can have repayment terms as low as 12 months and as high as 180 months or 15 years.
However, longer terms may include higher interest charges and lower monthly payments compared with shorter terms. For example, getting $100,000 in auto loan financing at 6% interest would cost $975.85 monthly under a 12-year term and $1,657.29 under a six-year term.
It might make more sense to get a shorter term if you can afford a higher monthly payment.
That’s because consumers with 12-year auto loan terms may end up paying tens of thousands of dollars in interest over the life of the loan. Below, we highlight some of the pros and cons of getting a 144-month car loan.
Key Points
• 144-month auto loans allow for purchasing classic and exotic cars, minimizing monthly payments.
• Good credit required for 144-month loans, but high interest rates possible.
• Typically used for ultra-luxury cars priced above $100,000.
• Alternatives include buying with cash or refinancing the car.
• Suitable for those who need to preserve savings or invest elsewhere.
Getting a 144-Month Auto Loan to Buy Your Car
Getting a 144-month auto loan to buy your car could be an option if you’re looking to own a classic or exotic car brand. Lenders may offer 144-month auto loans to finance ultra-luxury vehicles with retail prices above $100,000.
As mentioned earlier, getting $100,000 in auto loan financing at 6% interest would cost $975.85 monthly under a 12-year term and $1,657.29 under a six-year term. If you need $100,000 in car loan financing and cannot afford monthly payments above $1,000, the 144-month auto loan might be right for you.
Lenders generally charge interest when financing six-figure vehicles. If you need $100,000 in car loan financing and could afford monthly payments up to $2,000, a shorter term might serve you better. Loans with shorter repayment terms usually have lower interest costs than loans with longer repayment terms.
Paying interest over the life of a loan can add up. If you get a $100,000 car loan with a 6% interest rate and 12-year term, you may pay $40,522.43 in total interest over 144 months. You may pay $19,324.79 in total interest over six years if you get similar financing on a 72-month loan term.
When to Consider a 144-Month Loan
You may consider a 144-month car loan at any time, particularly if you’re interested in buying a six-figure car. The way car loans work is that lenders give borrowers financing in order to buy a motor vehicle.
Here are some factors to consider:
• Car loans with 12-year terms are scarce, but private lenders may offer them when financing classic or exotic vehicles.
• Getting a 144-month loan to finance a high-mileage used car could be difficult, although some lenders may be willing to finance such vehicles.
• A private party auto loan can provide you with financing to buy a new or used vehicle from a private person selling a car.
• Lenders may have general car loan requirements that ask borrowers to provide proof of income and proof of identity when applying for financing.
Can I Get Financing for an Exotic Car for 144 Months?
Yes, creditworthy borrowers may be able to get financing for an exotic car for 144 months. Some lenders even offer 180-month car loans to help consumers purchase vehicles worth $200,000. You may need a steady income, a base FICO® Score above 700, and an established credit history to qualify.
Can I Get a 144-Month Auto Loan on a 10-Year-Old Car?
Creditworthy borrowers can get a 144-month auto loan on a qualifying 10-year-old car. Some lenders may require the vehicle to be a 10-year-old Aston Martin, Bentley, Bugatti, Ferrari, Lamborghini, Lotus, Maserati, McLaren, or Rolls-Royce.
Getting a 12-year car loan on a 10-year-old economy car can be difficult but not impossible. Economy cars are generally small vehicles with more affordable price tags than luxury or premium vehicles.
144-Month Car Loan: Pros & Cons
The table below highlights some of the pros and cons of 144-month car loans:
thumb_up
Pros:
• Can help consumers buy classic and exotic cars
• Minimizes a borrower’s monthly payment
• Repayments are spread out over 12 years
thumb_down
Cons:
• May require good credit to qualify
• Lenders may require a 20% down payment on the car
• Interest costs can be high
Pros of a 144-Month Auto Loan
Some of the pros of a 144-month auto loan:
Investment
A 144-month auto loan can help consumers buy exotic vehicles as an investment. Exotic vehicles may appreciate greatly in value over time, according to Bugatti. This means owning an exotic vehicle may help you build wealth, which can partially or fully offset the cost of a 144-month loan.
Cost
Even if you can afford to buy an exotic car without borrowing money, paying that cost up front can deplete your savings. A 144-month auto loan would spread that cost over 12 years. Minimizing your upfront costs may preserve your savings or allow you to invest your savings elsewhere.
Affordability
A 144-month auto loan can promote affordability in the exotic car industry. The monthly payment on a 144-month auto loan would be substantially lower than buying the same vehicle on a 72-month repayment schedule.
Cons of a 144-Month Auto Loan
Here are some of the cons of a 144-month auto loan:
Lack of Options
Obtaining a 144-month auto loan may require purchasing a classic or exotic vehicle with a sales price of $100,000 or more. Such restrictions can leave you with a clear lack of options, particularly because exotic cars represent a small niche of the overall auto industry.
Depreciation
An economy car financed by a 144-month auto loan could potentially depreciate over the 12-year repayment period. Some lenders may offer 144-month car loans on non-exotic vehicles, and those vehicles historically experience significant depreciation over time.
144-Month Auto Loan Credit Unions
Some credit unions may offer 144-month auto loans on new and used vehicles. Some of these credit unions may finance economy vehicles under $40,000.
144-Month Auto Loan Lenders
Lenders of 144-month auto loans can include credit unions and private finance companies. Some of these lenders may specialize in the financing of classic and exotic vehicles.
Lenders may offer secured and unsecured auto loans. A secured car loan uses the financed vehicle as collateral, whereas an unsecured car loan has no collateral requirement. Lenders may repossess your vehicle if you default on a secured auto loan.
Recommended: Refinance Commerical Auto Loan
Alternatives to a 144-Month Auto Loan
Here are some alternatives to a 144-month auto loan:
Buying the Car With Cash
Instead of borrowing funds from a lender, buying the car with cash is an option for consumers who have sufficient money in the bank. One of the advantages of purchasing the car outright is that it gives you 100% equity in the vehicle and the certificate of title.
Refinancing the Car
If you already have a 12-year auto loan, you may qualify for auto loan refinancing. Refinancing pays off the original loan agreement and replaces it with new loan terms. Borrowers can refinance auto loans almost immediately.
Here are some auto refinance factors to consider:
• In terms of when to refinance a car loan, the right time for you to refinance may be whenever you can secure a lower interest rate or whenever you need a lower monthly payment
• The pros and cons of refinancing a car are something you may consider when evaluating whether to seek an auto refinance loan
• The cost to refinance a car may include several fees that can be a dealbreaker for some consumers
• Refinancing can help borrowers get a lower interest rate, but refinancing may also cause a borrower’s credit score to dip from a hard pull credit check
The Takeaway
Getting a 144-month auto loan has certain advantages and disadvantages. The 12-year repayment schedule may feature an affordable monthly payment, but borrowers may also pay high interest costs over the life of the loan.
If you’re seeking auto loan refinancing, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your car in minutes.
FAQ
Can you finance a car for 144 months?
Yes, you can finance a car for 144 months if you meet the lender’s minimum eligibility requirements. These lenders may require that you have steady income and strong credit. Some lenders may require the financed vehicle to be a classic or exotic car.
Does refinancing your car loan for 144 months make it cheaper?
Refinancing your car loan for 144 months could potentially replace your existing loan agreement with a more expensive loan product. Refinancing may generally offer you a lower monthly payment but could also increase your burden of debt in some cases. Refinancing for a lower monthly payment in some situations may cause you to pay more cumulative interest over the life of the refinanced loan term.
Should you use a 144-month auto loan to refinance your car?
Replacing your existing car loan with a 144-month auto refinance loan might not be right for you if you can afford higher monthly payments. Loans with longer terms may carry higher interest rates and lower monthly repayments compared with loans that have shorter terms.
Photo credit: iStock/Georgijevic
SoFi's marketplace is owned and operated by SoFi Lending Corp.
Advertising Disclosures: The preliminary options presented on this site are from lenders and providers that pay SoFi compensation for marketing their products and services. This affects whether a product or service is presented on this site. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider. See SoFi Lending Corp. licensing information below.
Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
SOALR-Q225-010