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How long is a typical car loan?

I'm looking to apply for a new car loan. I'm trying to figure out how long of a car loan I should get. I have no idea what’s ideal. I know the longer the term, the higher the risk of ending up underwater. How long is a typical car loan?

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Lauren Smith · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Thinking about the term length and how much you can afford means you’re on the right track. A typical car loan is
72 months
, or six years.
Needless to say, that’s a long time!
A 72-month loan term is not recommended by financial experts because of precisely what you mentioned. A car is a quickly depreciating asset, so paying it off slowly can lead to going upside-down (aka underwater) on the loan. That means you owe more on your car than what it is worth.
The good news is if 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.
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WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.

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