how long do car loans last

[LaOlive]

The standard length for a car loan, known as the loan term, typically ranges from 36 to 84 months. The most common term for both new and used vehicles is 72 months, or six years. While longer terms of 84 or even 96 months exist, they often come with higher interest rates and can lead to a situation called negative equity, where you owe more on the car than it's worth.

The right loan term for you is a trade-off between your monthly budget and the total interest you'll pay. A shorter term (like 36 or 48 months) means higher monthly payments but significantly less interest paid over the life of the loan. A longer term (72+ months) lowers your monthly payment but increases the total cost of the vehicle.

Loan Term	Average Monthly Payment (New Car, $40,000 Loan)	Total Interest Paid (Approx. 5% APR)	Key Consideration
36 months	$1,199	$3,164	Highest payment, lowest total cost
48 months	$922	$4,256	Good balance of affordability and cost
60 months	$755	$5,300	Previously the standard, now less common
72 months	$644	$6,368	Most common term today, higher total cost
84 months	$567	$7,628	Risky due to prolonged negative equity

Your decision should be guided by your financial health. A good rule of thumb is that your total monthly auto expenses (loan payment, insurance, fuel) should not exceed 10-15% of your take-home pay. Always aim for the shortest term you can comfortably afford to build equity faster and save money.

[VanClara]

Most people are taking out loans for 72 months these days because it makes the monthly payment easier to handle. But if you can swing a shorter loan, like 60 months, you'll own the car sooner and pay a lot less in interest. I always tell my friends to avoid stretching it to 84 months—you'll be paying for that car forever.

[JaxsonLee]

When I bought my last car, I focused entirely on the monthly payment. The dealer got me into a 84-month loan to get it where I wanted. Sure, the payment was low, but after three years, I needed to sell it and found out I owed thousands more than the car was worth. It was a tough lesson. My advice? Ignore the payment hype and choose the shortest term you can realistically afford.

[AaronRose]

From a financial perspective, a car is a depreciating asset. The optimal loan term minimizes your interest expense while the asset loses value. A 60-month term often represents the best balance. Terms beyond 72 months increase the risk of the loan balance exceeding the car's value, creating a financial liability. Your goal should be to align the loan term with the vehicle's practical lifespan and your debt-to-income ratio.

[LeKhloe]

In my experience on the lot, buyers are laser-focused on the monthly payment. We can often make a more expensive car fit a budget by extending the loan term. However, a responsible salesperson will also explain the downsides of a very long term. You pay more overall, and it ties you to the car for a long time. If your financial situation improves, making extra payments toward the principal can help you pay it off early and save on interest.