March auto loans longest ever, with an average of 70.6 months

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  • The average loan repayment period for new cars was 70.6 months in March, the longest ever, according to a new research report.
  • Loan lengths have risen steadily in addition to new car prices in recent years.
  • Average monthly payments also increased, reaching $ 573. In March 2019, the average monthly payments were $ 553.

    The repayment terms for buying new cars have increased inexorably and are getting longer every month. And now, in March, the average loan life, according to Edmunds research, hit 70.6 months – nearly six years – the longest on record.

    As the repayment term increased, so did the average monthly payments, which reached $ 573. In October, the average repayment period was was 69 months, and monthly payments then averaged $ 550. The price of a new car has increased steadily, and since April last year was up 29 percent over a decade earlier.

    From the middle of last month, Automakers started to roll Zero percent interest on loans with a term of up to 84 months for buyers with a first-class credit history. That said, Edmunds Executive Director of Insights, Jessica Caldwell, said in a statement that not many buyers have been able to take advantage of such offers.

    “The vehicle purchases made in March – especially in the second half – were likely demand-driven,” said Caldwell. “These buyers may not necessarily have qualified for zero percent financing offers, but despite everything else going on in the world, they needed a car.”

    As cars became more expensive and loan terms increased, more buyers had negative equity – they still owe money on a previous vehicle when they buy a new one – than ever before. corresponding Edmunds. In the first half of 2019, a third of new car buyers fell into this category, a decade ago it was 19 percent.

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