That said, we’re able to provide you with some monthly payments and interest amounts paid based on excellent, good, fair, bad, and terrible credit. Car loan terms have been getting longer and reaching all-time highs for several years now. Consider someone who takes out a loan for $20,137 – the average amount for a used car says Experian – over 60 months with a six percent interest rate. Average auto loan term surpasses 70 months for first time. Some drivers go even lower, opting for 48-month (4-year) car loan terms. Vehicle Price $ 5,000 25,000 50,000 75,000 100,000 Credit Rating APR % Very challenged15-18% Challenged13-16% Fair9-12% Good8-11% Very Good6-8% Great4-6% Excellent2-4% 490 and below […] For those with scores of 500 or lower, the average loan length climbs as high as about 72 months. The length of your loan will affect the interest rate and how quickly you build equity. The length of your loan will affect the interest rate and how quickly you build equity. You can adjust vehicle price, credit rating, APR, down payment amount, and term length. Their monthly payment is $389 and they pay $3,221 in interest by the end of the contract. Beyond the length of a loan, other factors, such as credit history, can affect your actual interest rate. In some cases, the term is easy to identify. Consumers are typically able to choose between 24- to 72-month loans.
Some car buyers will even sign up for a 36-month term (3 years).

In some cases, the length of a car loan is determined by the lender. The average length of a car loan ranges from 36 months to 72 months.

Car loan terms have been getting longer and reaching all-time highs for several years now. Estimate a car payment or auto loan terms by adjusting the values on the finance calculator below. Where possible, it is better to aim for a 36 to 48 month used car loan. In the last quarter of 2012, the average duration of an auto loan term was 65 months, or nearly five and a half years. Chase Auto Finance enjoy flexible car buying and auto loan options for new and used cars.
Just by shortening the loan term, you’d be saving $1,483 – about six car payments! However, there are some drawbacks and financial risks of taking on such long auto loans. Experian also reports that for new-car buyers with credit scores of 781 to 850, the average new-car loan term is around 63 months. The average length of a car loan ranges from 36 months to 72 months.

Auto loans come in several different terms, and each one can be beneficial to different consumers. The Average Used Car Loan Term. Here’s an example of the difference in the interest cost of a short-term versus a long-term loan.