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What’s the average car loan length?
This is the first time I'm taking out a loan. I'm not sure what type of loan term I want to get or will suit my financial needs the best. What is the most common loan length?
Phoebe Mah · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Great question. The length of your loan term will depend on several factors, including your credit and the type of vehicle you’re looking to finance. That said, the average
car loan
length is five to seven years, or 60 to 84 months. Most people opt for a longer loan term, typically 72 months, to avoid high monthly payments. That said, the longer your loan term is, the more interest you will have to pay. In addition, a longer loan term may mean you’re
upside-down loan
on your car loan until you pay down your loan. Depending on what loan term you receive, you may want to consider refinancing in the future. Refinancing is a great way to save money on your car loan’s interest rate. Finding the right lender can be a huge pain that might end up costing you time and money.
Jerry
removes the hassle by giving you one app that instantly connects you with top companies to meet your financial needs and save money.View full answer
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