The trend for longer auto loans means some consumers can qualify for financing up to 96 months, or eight years, should they want it.
The average loan term, meanwhile, stands at almost 69 months for new and 65 months for used vehicles, according to Experian data for the start of 2019.
Can you finance a car for 7 years?
Why people choose 7 year car loans
If you’ve financed your car with a long-term loan, you’re not alone. 72% of new vehicle loans are for 7 years or longer. While 7 years is a typical financing term, some car loans are as long as 10 years. Most people are so financially squeezed they live and die by monthly payments.
Is it bad to finance a car for 72 months?
Alarming car buying statistics
Auto loans over 60 months are not the best way to finance a car because, for one thing, they carry higher car loan interest rates. Experian reveals that 42.1% of used-car shoppers are taking 61- to 72-month loans while 20% go even longer, financing between 73 and 84 months.
Is a 60 month car loan too long?
Pay Off Your Car Loan Fast: A common car loan length is 60 months or 5 years long. Choosing a short-term car loan locks you into a larger payment versus a 60-month car loan, no going back and paying less. The good news is you are on a path to getting out of debt in a reasonable amount of time.
What is the longest you can finance a car for?
In the final quarter of 2012, the average term of a new car note stretched out to 65 months, the longest ever, according to Experian Information Solutions Inc. Experian said that 17% of all new car loans in the past quarter were between 73 and 84 months and there were even a few as long as 97 months.
How much should I put as a downpayment on a car?
This means buyers who want to finance the purchase of a $15,000 used vehicle should plan to put at least $1,500 down. Lenders may require more money down on a new car than a used car to offset its quicker depreciation. Typically, an initial payment of 20 percent or more of the purchase price is wise.
What is a good interest rate on a car?
The average loan interest rate on a 60-month new car loan is 4.36%. However, borrowers with excellent credit pay a lower rate of around 3.724%. If you have a score lower than 720, you’ll pay an average of 5.098%. The lower credit score can cost you $18 per month and $1,100 in total interest.