Marcus’s car is paid off. It runs fine. And there’s a new truck he really, really wants. The dealer says: only $761 a month.
The real price
The average new car loan right now is about $44,664 at about 7%.
| Term | Payment | Total interest |
|---|---|---|
| 60 months | $884 | $8,400 |
| 72 months | $761 | $10,162 |
| 84 months | $674 | $11,960 |
At 72 months, he pays $54,826 for a $44,664 truck. The dealer can get the payment to $674 with 84 months, but that’s more interest. A quarter of new car loans now run 84 months or longer.
The other choice
Keep the old car and invest the $761 instead. In six years at 8%: $70,031. He put in $54,792. The other $15,239 is growth.
And here’s the pattern most people fall into: pay off one car, start the next. A $761 payment from 40 to 65, invested instead, is $723,731.
The Honest Check
Old cars aren’t free. Say repairs average $125 a month.
| 6 years | |
|---|---|
| Invest $636 a month at 8% | $58,528 |
| Invest $761 a month at 6% | $65,757 |
Either way, the old car is the clear money winner.
The plan
You need a car. You don’t need a payment forever.
- Drive the paid-off car longer.
- If you buy, keep the loan short.
- When it’s paid off, keep making the payment, to your own investment account.
A car is a tool. The payment is a choice. Run yours before the dealer does.
Next up: the small leaks you forgot you signed up for. What your subscriptions cost you by 65.
How the math works
Loan figures: QWOS Auto Loan Calculator ($44,664, $0 down, no trade-in or tax, 7%). Investing figures: QWOS Compound Interest Calculator (monthly deposits, monthly compounding). The $636 is $761 minus $125 of repairs. Loan size, rate and the 25.5% of loans at 84+ months: Click2Houston, Oct 19, 2026.
Education, not financial advice. Hypothetical returns; real results vary and losses happen.