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This is slightly higher than it was the year before.
Typically, auto loan terms are 48, 60, 72 or 84 months.
New auto loan terms range from around 71 to 74 months for all other borrowers.
The typical auto loan term for used car loans is between 63 and 68 months.
For these borrowers, average loan terms have increased by about one to two months.
Long-Term Car Loans: Pros and Cons
Knowing the average length of a car loan is one thing.
Whats more important is knowing the advantages and drawbacks of choosing a short-term vs. long-term loan.
Here are the big ones:
Certain things, like eligibility criteria, depend on the lender.
Some lenders might view a longer-term loan as riskier and have stricter requirements.
Interest rates forused car loansmay also be higher.
This generally means a lower interest rate and faster loan payoff, too.
That same loan with an 84-month term would cost $36,814.
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