What's the most popular length of car loan?

I want to get a car loan, but I also want to find the sweet spot between interest and monthly payments. What's the most popular car loan length?

The most popular car loan length as of 2020 is 72 months with an overall average of 70.9 months. This is closely followed by an 84-month loan, then a 60-month loan.
2020 was the first year on record that the average car loan reached above 70 months, signifying Americans’ urge to lower monthly payments versus paying less interest. A longer car loan length also comes with some downsides, such as:
  • Going upside down on the car loan
  • Paying way more in interest
  • Taking out a larger loan than you can afford
  • Warranty running out before the loan is paid off
As a result of these disadvantages, you need to strongly consider if a longer loan is the best move for you. Keep in mind that you will also need to maintain full coverage car insurance for the duration of the loan, which can get mighty expensive.
If you decide to move ahead with any type of loan, don’t leave money on the table. Use the Jerry app and compare quotes from more than 50 top car insurance companies, including Nationwide, Allstate, and Travelers, in minutes for free. The average Jerry driver saves $879 a year on car insurance!
Eric Schad
Answered on Nov 23, 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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