From Yahoo Finance · · 1m 40s
Average Car Loan Length Explained
How long should you finance your car for?
In brief
How long should you finance your car for? The average car loan length is 69.46 months for new vehicles and 67.86 months for used vehicles in Q2 2026, according to Experian. Originally reported by Yahoo Finance.
Quick answers
- What’s the average car loan length?
- The average car loan length for new vehicles is 69.46 months in Q2 2026, while used vehicles average 67.86 months, according to Experian.
- How does loan term affect payments?
- A longer loan term means lower monthly payments but higher total interest costs over the loan term.
- How to choose the right loan term?
- Determine your budget, shop for preapproval, calculate borrowing costs, and make a decision based on monthly payment and total cost.
- What is the key takeaway from Average Car Loan Length Explained?
- The average car loan length is 69.46 months for new vehicles and 67.86 months for used vehicles in Q2 2026, according to Experian.
What’s the average car loan length?
The average car loan length for new vehicles is 69.46 months in Q2 2026, while used vehicles average 67.86 months, according to Experian.
How does loan term affect payments?
A longer loan term means lower monthly payments but higher total interest costs over the loan term.
Credit score impacts loan terms
Borrowers with excellent credit scores typically get loan terms of 64.88 months for new cars and 66 months for used cars.
Loan terms by credit score
Credit scores from 781 to 850 (super prime) average 64.88 months for new cars and 66 months for used cars.
Shorter loan terms save money
Shorter loan terms reduce total interest paid but increase monthly payments, potentially making the car more affordable in the short term.
Longer loan terms lower monthly payments
Longer loan terms lower monthly payments but increase total interest costs, risking being upside-down on the loan.
How to choose the right loan term?
Determine your budget, shop for preapproval, calculate borrowing costs, and make a decision based on monthly payment and total cost.
Loan term trade-offs
Longer terms lower monthly payments but increase interest costs and risk of being upside-down on the loan.
Bottom line
The average car loan length ranges between 24 and 84 months, with the right term depending on your budget and credit score.
The headline
The average car loan length is 69.46 months for new vehicles and 67.86 months for used vehicles in Q2 2026, according to Experian.
