How long is a normal car loan?

My parents ended up in an upside-down car loan when I was little, and it was awful. I remember our car getting repossessed when my mom was supposed to pick me up from school on a snowy day. My dad always says it was because they had the loan for too long. What’s a normal loan length for a car?

Answer
I’m so sorry that happened! It sounds like a vivid memory.
Nowadays, a normal car loan is 72 months, or six years. However, financial experts warn this is too long.
Within six years, your car can depreciate in value to the point that you owe more on the loan than the car is worth. This equates to being upside-down on the loan and leaves you with negative equity.
If you can afford it, 60 months, or five years, is a safer term length. Talk with your lender to work something out.
The good news is if at any time you want to get out of a lengthy car loan or find a loan with a better interest rate, you likely can by refinancing.
Jerry is an app that does all of the work needed to refinance your car for you. Jerry uses your current loan information and credit score to find competitive rates from top lenders. On average, people pay $85 less every month on their car loans after refinancing.
Lauren Smith
Answered on Nov 19, 2021
Lauren has written for World Nomads, the Matador Network, Korvia Consulting, and once upon a time Three Fates Games. She graduated from Columbia College of Chicago with a BFA in Creative Writing. After graduating, she moved overseas and lived in South Korea where she spent her free time traveling and going on road trips with friends. She misses the rest stop potatoes and is trying to figure out how to recreate them at home. She's now based outside of Chicago and when she's not writing she spends her free time reading, playing video games, and exploring whenever she can.
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