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"Is three years considered a normal term length for a car loan? "
"I put a large down payment on my car and was approved for a low interest rate on a three-year loan. The payments are a little on the high side, but I can afford it.
However, I’m wondering if it would have been a better idea to have gone with a longer loan to reduce my monthly payments. What does everyone else usually do?"
Johnny Puckett · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“The average length of a car loan seems to be increasing every day. As of now, the average car loan term is about about six years, and seven-year loans are becoming very popular.
Popular does not always equal good, though, and if you can afford the payments that you have, you should not second guess yourself.
By the time a seven-year loan is paid off, the car will likely not be worth much more than the interest paid on the loan (though this depends on the car, of course). You will likely be able to sell or trade in your car for a larger amount because of your decision to go with a shorter loan.
“
View full answer
- Gregory R.
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