Get Consumer Loan Rates And Terms Vehicle Loans

Average auto loan terms The most common terms are 60 and 72 months, but 84-month terms are becoming more common. There is no perfect term, and it is instead specific to your budget and needs. A longer term means lower monthly payments, but a higher cost overall.

You may be able to find lenders that will customize car-loan terms, but that's an exception and not a norm. The most common terms for car loans are 24, 36, 48, 60, 72, and 84 months. A few lenders will even go as high as 96 months. However, again, that's an exception and not the norm.

What is a good interest rate for a 72-month car loan? An interest rate under 5% is a great rate for a 72-month auto loan. However, the best loan offers are only available to borrowers who have the best credit scores and payment histories.

Average car loan interest rates by credit score Credit scoreAverage APR, new carAverage APR, used carSuperprime: 781-850.5.61%.7.43%.Prime: 661-780.6.88%.9.33%.Nonprime: 601-660.9.29%.13.53%.Subprime: 501-600.11.86%.18.39%.2 more rows • Nov 30, 2023

Overall, if you're choosing between the two, a 60-month loan is better because you'll pay off the loan faster with a lower interest rate, and you'd be paying less overall for your car.

The most common loan length is currently 72 months for both new and used vehicles. The average length of a car loan changes from time to time, and 72 months is a bit higher than in previous decades.

The average car loan interest rate currently is 9.00%. Auto loan annual percent rates (or APRs) are the most common rates you'll see advertised on auto loan sites. APRs include your interest rate along with the fees and other costs that come with the loan.

A 72-month auto loan isn't always the best option. Compared to a 60-month loan, you'll pay interest for another 12 months, which increases the overall cost of borrowing. A 72-month auto loan also puts you more at risk of being upside-down on the loan, which is owing more than your vehicle is worth.