"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?"

Answer
“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.
avatar
Johnny Puckett
Answered on May 11, 2021
Johnny Puckett is a freelance writer and automotive expert. He has contributed content to a number of some of the largest online publications, aftermarket automotive manufacturers’ sites, and automotive informational sites. His experience in the automotive and information fields informs his writing at Jerry. His automotive interests bleed into his free time, where he enjoys modifying his favorite cars and woodworking.
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.

Read advice from car experts at Jerry

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings — it's 100% free