Key takeaways A longer loan term means you’ll have a lower monthly payment, but you’ll also pay more in interest. A shorter loan term helps minimize borrowing costs and the risk of being upside-down on your loan. Consider the monthly payment and overall cost of ownership when determining which auto loan term is best for you. Your loan term is the amount of time it takes for you to repay a loan, and it may also affect the auto loan rates you receive. On average, drivers financing a new vehicle had ...