Loan terms

These are the car brands with the longest loan terms – 24/7 Wall St.

Auto loans are part of the process of selling cars and can be categorized by term and loan rate. It’s not uncommon for a loan term to reach 72 months (many people don’t own a new car that long). Loan rates can be as low as zero.

A good example of long-term loans and low interest rates is Chevy’s current offer on its 2022 Trax small crossover. The offer is 0% financing for 72 months.

One of the reasons automakers offer attractive loans is that they often own the business making the loan. It’s a way for the manufacturer to make more money. For example, Mercedes has a division called Mercedes-Benz Financial Services.

LendingTree looked at a loan term by state in its “Where Borrowers Take Out the Longest Auto Loansstudy. LendingTree points out that: “As the prices of new and used cars soar, the average duration of car loans is also increasing. Since long-term car loans can mean lower monthly costs, buyers car owners may prefer or need more time to afford vehicle purchases, they also cautioned that such loans can be costly due to accrued interest.

To make its decision, LendingTree looked at 29,000 auto loans closed between October 12, 2018 and October 12, 2021. It looked at loans older than 60 months and those with terms longer than 72 months using slightly different criteria. For 60 months or more, the measure was percentage of loan terms. For 72 months, the measure was the percentage of all loans falling into the category. The universe was the 48 largest subways.

The same study looked at the car models with the longest loans. The brand with the longest loan term is Tesla with 67.1 months. Here are the 20 car brands with the longest loan terms:

  • Tesla (67.1)
  • Aries (66.3)
  • Kia (64.8)
  • CMG (64.6)
  • Landrover (64.3)
  • Nissan (64.0)
  • Cadillac (63.9)
  • Dodge (63.7)
  • Infiniti (63.6)
  • Chevy (63.5)
  • Jeep (63.4)
  • Mitsubishi (63.4)
  • Hyundai (63.1)
  • Ford (63.0)
  • Buick (62.4)
  • Porsche (62.4)
  • Jaguar (62.3)
  • Mercedes-Benz (62.3)
  • Volkswagen (62.3)
  • Acura (62.1)

Click here to see which are the most affordable cars in America.