How long do most car loans last?

I want to get a car loan, but I want to get the right balance between low-interest rates and low monthly payments. What term do most people choose to strike the right balance?

Answer
It’s always good to consider the length of a car loan before you buy it to balance your interest rate and your monthly payment.
Most car loans last 72 months, as this loan term eclipsed the 60-month loan as the most popular choice in 2020. The reason that most people go with a 72-month loan is due to a mix of financial flexibility, record-low interest rates, and low monthly payments. With low monthly payments, you also have more financial flexibility to pay for other bills or save some money in an emergency fund.
However, a 72-month loan also comes with some drawbacks, such as:
  • More interest paid over the life of the loan
  • Being upside down on the car loan for longer
  • Your warranty may end before you pay off the loan
  • Buying a car that’s more than you can afford
Regardless of which car loan term you choose, you’ll need to have full coverage auto insurance. Jerry can help you find the best rates. Sign up with Jerry today to search and compare quotes from up to 50 top insurance providers.
Eric Schad
Answered on Nov 04, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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