The most common term currently is for 72 months, with an 84-month loan not too far behind.
It’s been creeping up: 10 years ago, the most common new-car loan term was 60 months, followed closely by 72 months.
Loans for used cars are about as long: The most common term for a used car in 2018 was 72 months.
Can you get a 72 month used car loan?
A 72 month used car loan should not be your first choice. Even though your monthly payments are lower with the 72 month used car loan, the total you pay will be much higher because the interest rate is higher and you are paying it for a longer period of time.
Is financing a car for 72 months bad?
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.
How long should your auto loan be?
The best car loan term is subjective. You’ll need to figure out how much you can afford each month before determining how long your auto loan should be. Loan terms can range from 24 to 72 months or more, and shorter loan terms lead to a higher monthly payment but a lower overall cost of financing.
Is an 84 month car loan a bad idea?
Reasons an 84-Month Auto Loan Might Not Be the Best Idea
The main reason to avoid an 84-month car loan: You’ll pay more interest. But even if you get a low interest rate, the longer your car loan, the more interest you’ll pay over its life. Suppose you buy a $25,000 car with no down payment at 5.09% interest.