The most common term currently is for 72 months, with an 84-month loan not too far behind.
In fact, nearly 70% of new car loans in the first quarter of 2020 were longer than 60 months — an increase of about 29 percentage points in a decade.
Is 72 month car loan bad?
Auto loans over 60 months are not the best way to finance a car because, for one thing, they carry higher car loan interest rates. Experian reveals that 42.1% of used-car shoppers are taking 61- to 72-month loans while 20% go even longer, financing between 73 and 84 months.
Is 72 months too long for a car loan?
The most common term currently is for 72 months, with an 84-month loan not too far behind. It’s been creeping up: 10 years ago, the most common new-car loan term was 60 months, followed closely by 72 months. Loans for used cars are about as long: The most common term for a used car in 2018 was 72 months.
Should I get a 72 month car loan?
A 72 month used car loan should not be your first choice. You will pay a higher interest rate for this long-term loan than you would for a three- or five-year loan. This is because the longer loan term means there is a longer time period for which the lender is at risk for having loaned you the money.
What is a good interest rate for a 72 month car loan?
Average Interest Rates by Term Length
|Auto Loan Term||Average Interest Rate|