Average auto loan term surpasses 70 months for first time. The typical car loan length has also grown longer for used car buyers, with 41.3% of consumers in this category choosing 61 to 72-month loans, notes Experian. A 72 month used car loan is expressed by number of months and the payment per month. When you finance indirectly through a dealership, the standards for purchasing a used vehicle typically top out at 10 years. However, there are some drawbacks and financial risks of taking on such long auto loans. However, there are some drawbacks and financial risks of taking on such long auto loans. A 72 month used car loan is expressed by number of months and the payment per month.

The following table shows a $20,000 loan at 8%, with monthly payments in 1 year increments from 12-72 months. Experts believe consumers are extending loan terms as a way to combat rising new car prices and, more recently, increasing interest rates. The average length of an auto loan in the U.S. is now 70.6 months and comes with a monthly payment of $573, according to the latest research.. Money expert Clark Howard says that’s nearly 30 months longer than any auto loan you should ever take out!. Consumers are typically able to choose between 24- to 72-month loans. Those with bad credit tend to have longer loan terms than those with good or excellent credit, according to the report. There are 16.2% of used car purchasers who finance their vehicles for between 73 and 84 months. Longer loan terms bring down your monthly payment obligation, which means someone with less than perfect credit is more likely to get approval from a lender. Estimate your monthly payments with Cars.com's car loan calculator and see how factors like loan term, down payment and interest rate affect payments. Choosing your loan term is important, so make sure you do some research and budgeting to find the ideal length for you. Most APRs will be higher for a used car auto loan since used car values can vary greatly depending on the history, condition and miles driven.

The length of auto loan term you choose for your financing will affect all other facets of your loan.This includes rate, monthly payments and flexibility of terms. In some cases, the length of a car loan is determined by the lender.
The better your credit history and current income, the more likely you are to get approved for a loan with a shorter-term. Depreciation of Asset. Now, let’s shorten that loan term: Auto loan amount: $10,000; Interest rate: 12%; Loan term: 60 months; With a loan term of 60 months, you’d end up paying $3,346 in interest, and a total of $13,346 for the vehicle.

That said, we’re able to provide you with some monthly payments and interest amounts paid based on excellent, good, fair, bad, and terrible credit. In the last quarter of 2012, the average duration of an auto loan term was 65 months, or nearly five and a half years. Estimate a car payment or auto loan terms by adjusting the values on the finance calculator below. Seventeen percent of auto loans issued that quarter lasted 73 to 84 months. Short-Term Loans. Auto loans are often quoted in months, such as 60-month loans. And three-quarters of new-car loans were 61 months … 72 months is considered a very long loan, especially for a used car. Here’s an example of the difference in the interest cost of a short-term versus a long-term loan. The long loan term on a used car will often lead to an upside down loan situation. 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. Or see if refinancing is right for you.

It is not wise to elect a 72 month used car loan. The available loan terms are usually 24 months, 36 months, 48 months, 60 months, 72 months, and 84 months. Just by shortening the loan term, you’d be saving $1,483 – about six car payments!
However, loans can last for any length of time agreed to by the lender and borrower. While the longer length may be safe for a new car, a used car's value will depreciate too quickly to make this a viable option. The length of the loan you choose will also determine how quickly you can build equity in the car, which is a large consideration with used car … Vehicle Price $ 5,000 25,000 50,000 75,000 100,000 Credit Rating APR % Very challenged15-18% Challenged13-16% Fair9-12% Good8-11% Very Good6-8% Great4-6% Excellent2-4% 490 and below […] Just by shortening the loan term, you’d be saving $1,483 – about six car payments! Their monthly payment is $389 and they pay $3,221 in interest by the end of the contract. For our puposes, though, we will use current average rates as posted by valuepenguin.com. It’s displayed in 12-month increments and can last from two to eight years. How Does the Interest Rate Impact a Car Loan? The length of your loan will affect the interest rate and how quickly you build equity. The longest typical length on a used car loan is seven years or 84 months.