Car loan terms now go as long as 84 months
Remember when 60 months was considered a long loan term? Those days are long gone, as the largest category of loan term by far is now 61 to 72 months. That group accounts for nearly 42 percent of new-car loans, according to Experian Automotive.
But that category has dropped slightly, as 25 percent more buyers are taking out loans of 73 to 84 months than was the case one year ago. That group now makes up 19.5 percent of new-car loans.
Loan terms of 25 to 36 months, which would bring consumers back to the market with positive equity in a reasonable period, fell nearly 25 percent in the past year.
But as dealers are well aware, buyers with minimal funds on a down payment and a trade-in so old its worth little or nothing are likely to find long loan terms their only option.Download Bulletin PDF