How long is a car loan for?

I want to get a car loan, but I don't want to have it hanging over my head forever. What are the different loan lengths? Which one is the best?

Answer
Although the average car loan in the United States is 70.9 months as of 2020, most lenders offer car loans in 12-month increments, ranging from 12 to 96 months in most cases.
A 72-month loan is the most popular length for a loan followed by an 84-month loan. A 60-month loan comes in third place. However, deciding what loan is best for you is determined by several factors.
To save the most money and pay the least interest, you should go with the shortest loan term you can comfortably afford. Note that the shorter the loan, the quicker you’ll pay it off. That said, your monthly payments will also be much higher than a longer loan. Therefore, you should weigh interest paid and monthly payments to come to the right conclusion.
And keep in mind that the lender will also require you to have full coverage auto insurance for the duration of the loan, which can add up over time. So whether you go with a short-term or long-term loan, make sure you’re getting the best rates. Use the Jerry app to compare rates from more than 50 top providers and get the best deals delivered to your phone in minutes for free. The average Jerry driver saves $879 a year on car insurance!
Eric Schad
Answered on Nov 24, 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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