How Long Can You Finance a Car?

Car loans typically range from 24 to 84 months, with 60 to 72 months being the most common. As of late 2025, the average new car loan term was approximately 69 months (Experian), and a record 20.8% of new car loans stretched to 84 months or longer — primarily because high vehicle prices are pushing buyers toward longer terms to keep monthly payments manageable.

Here is how each loan length affects your cost:

Short-term (24–48 months) Higher monthly payments, but you pay significantly less interest over the life of the loan and build equity in the vehicle faster. Best for buyers who can comfortably afford the higher payment.

Medium-term (60–72 months) The most popular range. Balances monthly affordability with reasonable total interest. At today's average rate of ~6.56% for new cars, a 60-month loan on $43,000 financed costs approximately $840/month and ~$7,400 in total interest.

Long-term (84 months or more) Lower monthly payments, but total interest paid can nearly double compared to a 48-month loan. The biggest risk: vehicles depreciate faster than the loan is paid down, leaving you "underwater" (owing more than the car is worth) for the first several years. Lenders also typically charge higher interest rates on 84-month loans.

Rule of thumb: Choose the shortest loan term whose monthly payment fits your budget. For most buyers, 60 months is a reasonable ceiling. If you can only afford the payment at 72 or 84 months, consider a less expensive vehicle or a larger down payment rather than stretching the term.