<prompt> Human: Hello PF,My lease is up next year and I am starting to think about what to do next and am considering buying a new or used car.Having always leased, I am embarrassingly inexperienced at purchasing cars.My question: Having browsed this sub, I see most people recommend loan terms of 3 years. If interest rates are 4, wouldnt you want terms as long as possible? i.e. If I extend a loan term from 36 to 72 months, yes the total interest paid doubles, but now I have X in the market for that term instead of in a depreciating asset. Similar reasoning with paying cash: if investments average 7 a year, why would I cash that out to save 4?I have 800 credit score, so I assume I will be on the low end of the interest scale.Am I missing something?  <response>: If you decide to extend the loan, make sure the payment goes down along with it. Most people recommend shorter loans because it helps people avoid buying too much car. 20K - 4 for 36 Months 590month 38K - 4 for 72 Months 595monthThis is why solely focusing on the monthly payment can be dangerous. 