How long is an average car loan?

I want to get a car loan, but I’m not sure about how long the term should be. What’s the average car loan length? What are the pros and cons?

Answer
The length of a car loan varies from lender to lender and the preference of the borrower. But as of Oct. 2021, the average car loan is 70 months with the most common term being 72 months.
Longer loans have become more popular in the past decade, especially as interest rates hit all-time lows and people want to lower your monthly payment. However, a 72-month loan may not be the best choice for everyone. To decide whether a 72-month loan is ideal for you, weigh the pros and cons.
PROS
  • More financial flexibility
  • Lower monthly payments
  • Ability to pay more toward the loan if you want
CONS
  • Higher interest rate
  • Upside down on the loan for a longer length of time
  • More interest paid over the life of the loan
  • Car fatigue, or wanting to buy a new car even if you still owe on your current car
Regardless of whether you decide to get a 72-month car loan or a different term, make sure you shop around for car insurance on the Jerry app to get the best rate.
As a licensed broker, Jerry can help you find and compare quotes from more than 50 top providers, including Nationwide, Allstate, and Travelers, in just minutes. When you find a better rate, Jerry can help you buy your new coverage and even cancel your old policy!
Eric Schad
Answered on Nov 30, 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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