What is the average term for car?

The average term for car loans is stretching longer

Auto loan terms are stretching longer. Experian reports the average new car loan lasts nearly six years (68.2 months), used cars slightly less (67.2 months), while leases average 35.7 months.

There are a few factors that are contributing to this trend. One is that cars are becoming more expensive. The average price of a new car is now over $33,000, and the average price of a used car is over $20,000. This means that borrowers need to take out larger loans, and they are spreading the payments out over a longer period of time in order to make them more affordable.

Another factor that is contributing to the trend of longer loan terms is that interest rates are still relatively low. This makes it more affordable for borrowers to take out a loan with a longer term, even if the interest rate is slightly higher.

Finally, some lenders are offering longer loan terms as a way to attract borrowers. They know that many consumers are looking for ways to save money on their car payments, and they are willing to offer longer terms in order to make their loans more appealing.

If you are considering taking out a car loan, it is important to be aware of the average loan term. This will help you make an informed decision about the loan that is right for you.

#Autoterms #Carterms #Vehicledata