June 3, 201511 yr 67 months is the average for a car loan for a new car (new as in "not used). 25% of the loans were 73 to 84 months. http://www.autonews.com/article/20150603/FINANCE_AND_INSURANCE/150609945/average-new-car-loan-hit-67-months-in-q1
June 3, 201511 yr Wow, much longer than I thought. 60 months is the most I thought there was. 73 to 84 months is crazy to me.
June 3, 201511 yr I saw a story on this topic just recently talking about how leasing is now the way many are going versus these long term car loans.
June 3, 201511 yr I think the crazy cost of many new vehicles necessitated the extended lengths of the loans.
June 3, 201511 yr Outside of hitting the Powerball I will never make the mistake of buying a NEW vehicle again. You can get the same vehicle one year old and save 25% or more in most cases. Went without a car payment of any kind for the last couple of years...finally relented and updated my wife's vehicle a few years...thanks @cammando for the help on that BTW...already looking at getting aggressive with payment schedule to pay of much sooner than the term of the loan.
June 3, 201511 yr Cars to 7 years, houses to 40 years. Crazy. A loaded new Truck used to cost $25,000...now $45,000 to $60,000 A really nice home used to be able to be found for $150,000...now $250,000+
June 3, 201511 yr Author ^ Do you have the prior Q numbers? No but it hasn't changed much in the last couple of years. One plus for those that take such a long loan is that cars are made better so they last longer.
June 3, 201511 yr Author In related news, vehicle leasing is increasing. About 31% of new vehicles sold were leased in Q1. That number may rise a bit until the manufacturers have to bring down the estimated lease-end value of the cars which will result in the lease payment going up a bit. Leasing is a balancing act for new car manufacturers.
June 3, 201511 yr Wife and I did a 72 month one for her new car back in July of 2013. Did it to keep the required payment as low as possible. Should be paid off in less than a year from now.
June 3, 201511 yr General rule of thumb for buying a house is 2/3 times your annual salary, so I wonder what the general rule for buying a car is?
June 3, 201511 yr General rule of thumb for buying a house is 2/3 times your annual salary, so I wonder what the general rule for buying a car is? I've never heard that before.
Archived
This topic is now archived and is closed to further replies.