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How long is the average car loan in America?
I want to compare car loan rates, but I'm not sure what length to choose. What's the most common length of car loans in the U.S.?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
The average
car loan
in America is now 72 months, which recently eclipsed a 60-month loan as the most popular loan term in the nation.The 72-month loan has become more popular due to a mix of record-low interest rates coupled with the American consumers’ desire to have low monthly payments. Plus, the lower payments offer more financial flexibility each month, so you’re not saddled with the higher payments you would find with shorter-term loans.
With that said, a 72-month loan also has drawbacks that you need to weigh, including:
- More interest paid over the life of the loan
- Being upside down on your car loan for longer
- The potential of your warranty running out while you still own the car
Whether you decide to get a 72-month loan or not, your lender will require you to have full coverage auto insurance for the duration of your loan. You can save money on your car insurance by shopping around. Use the
Jerry
app to compare quotes for full coverage so you can get the best value for your money and cut your bills each month.View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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