Auto Loans Get Longer as Vehicle Prices, Interest Rates Rise

As vehicle prices and interest rates increase in tandem – creating affordability issues in the process – it leaves many automotive consumers with “one lever”: longer financing terms, says Patrick Manzi, senior economist for the National Automobile Dealers Assn.

Not long ago, 24-month car loans were standard. Today, the current average is 69 months. Loans stretching to 72 and 84 months “are common these days,” Manzi notes at NADA’s annual convention and expo here.