What's the most common length of car loan?

I'm curious how long most car loans are. I want to get a 72-month loan, but my dad thinks that's far too long. So what's the most common length?

Answer
While your dad isn’t wrong about the historical length of car loans, today most loans tend to be on the longer side, with over 70% of new car loans being 72 months (six years) or longer.
If you take out a 72-month loan, you’re choosing one of the most common loan lengths. People may choose 72-month loans because they offer a balance of relatively low monthly payments and a decent (but still relatively high) interest rate.
However, there are some notable drawbacks to choosing a 72-month loan, including:
  • More interest paid over the life of long loans
  • Your car’s warranty may expire before your loan ends, potentially leaving you to cover the cost of car repairs on top of making monthly payments
  • Car fatigue, a situation where you want a new car but still have a loan on the old one
When you agree to a loan, your lender will require you to purchase full-coverage car insurance. The good news is you don’t have to pay a fortune for good coverage—just use Jerry to compare quotes and find the best deals!
Eric Schad
Answered on Oct 28, 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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