I told them to take the longer loan, and here’s why. If the interest rate is the SAME on a 48-month or 60-month loan, I’d rather take the 60-month term for the lower required payment. Most car loans accrue interest daily, meaning the faster you pay down the principal, the less interest you pay over time. So why not take the lower payment but voluntarily pay what you would’ve paid on the 48-month loan? You could pay it off in roughly the same 48 months, or even sooner if you pay extra. The advantage? FLEXIBILITY. If money gets tight one month, you’re only obligated to make that lower payment. The catch is you actually have to make those extra payments toward principal. Otherwise, the longer loan will cost you more in interest. Also, make sure there’s no prepayment penalty. That’s my reasoning. Do you agree or would you still take the shorter term?