What’s the average car loan length?

The average car loan term is approximately 69.46 months for new vehicle borrowers and 67.86 months for used vehicle borrowers, based on Experian's State of the Automotive Finance Market report for Q2 2026. Longer loan terms result in lower monthly payments but increase the overall cost of the loan due to accrued interest. Shorter loan terms lead to higher monthly payments but save money on interest.

A loan term of 24 to 84 months is typically offered, with the lower end suited to those with tighter budgets and the higher end appealing to those seeking lower monthly payments. Those with excellent credit scores generally have more loan term options and favorable interest rates, while lower credit scores limit available terms.

An auto loan calculator can help estimate monthly payments and total interest costs for different loan terms. While longer loan terms provide lower monthly payments, they come with higher borrowing costs and the risk of being upside-down on the loan. Shorter loan terms have higher monthly payments but result in lower overall borrowing costs.

Borrowers should consider their budget, credit score, and desired vehicle affordability when choosing a loan term.