How long is a car loan on average?
I’m getting a car loan, but I can’t decide how long of a term to choose. My friend said shorter is better — 60 months or less — but I like the low payments of a 72- or 84-month loan. In addition, my buddy said loans that long are rare. So what’s the average car loan length?
- Lower monthly payments
- More financial flexibility
- The ability to pay toward the principal as you see fit without giving up low monthly payments
- Full coverage insurance required for six or seven years
- Warranty can run out before the car is paid off
- More interest paid over the life of the loan
- Higher interest rates
- Buying a car you can’t afford