What To Know About Extended Auto Loan Duration

As interest rates in the auto financing industry have consistently increased, you may be looking for ways to lower your monthly payment. One way to do so is by choosing car financing with the longest term.

The typical car loan length is currently 72 months (6 years), which is higher than in previous decades. The longest term for auto financing you’ll likely find is 96 months (8 years). 

While the length of an auto loan affects your monthly payment, it also affects how much you pay in interest and sometimes even the size of your down payment. The longer you take to pay off your loan, the more interest you’ll pay in the long run.

Common Car Loan Lengths

While the average car loan is 72 months for both new and used vehicles, car loan length varies widely. You may find some loans as short as 12 months or as long as 96 months. 

However, the most common car loan lengths are the following:

• 24 months (2 years)
• 36 months (3 years)
• 48 months (4 years)
• 60 months (5 years)
• 72 months (6 years)
• 84 months (7 years)



In the fourth quarter of 2023, over two-thirds (68%) of car buyers chose a loan period of 61 months or more.

Advantages of Maximum-Length Car Loans

If you’re researching “What is the longest term for a car loan?” you likely know some of the advantages of longer repayment periods. Longer-term loans allow you to do the following:

• Reduce your monthly payments: Most people choose the maximum car loan duration available to lower their monthly payments. Because the total loan amount is spread out over a longer term, you can pay less each month.
• You can buy a more expensive car: If your monthly budget is tight, a longer-term loan may enable you to purchase a car you couldn’t otherwise afford.
• You can improve your credit score: Paying back smaller amounts on time over a longer period may help you boost your credit score without straining your monthly budget.

Disadvantages of Maximum-Length Car Loans

While choosing a car loan with the longest term offers some benefits, it also has drawbacks. 

• Higher overall interest: The longer the loan term, the more you’ll likely pay in interest. Longer repayment periods give loans more time to accumulate interest. In addition, many longer-term loans have higher interest rates. 
• Increased risk of going “upside down”:  If you’re upside down on an auto loan, you owe more than the car is worth. The longer you have a loan, the greater the chance of your car depreciating significantly before you pay it off.
• More opportunity to default: You don’t know exactly what your life will look like in six or eight years. Your financial situation could change substantially during longer loan terms, making it harder to pay them off.

Need Auto Financing? Contact 1803 Capital

Now that we’ve answered, “What is the longest term for a car loan?” 1803 Capital is standing by to help you with your auto loan needs. We specialize in car loan financing for customers with imperfect credit.

At 1803 Capital, we look at more than just your credit score, basing our lending decisions on your circumstances. For more information about how we can help you with an auto loan, contact us at (866) 890-2415 today!