Six-Year Car Loans Becoming Increasingly Popular
WESTLAKE VILLAGE, Calif. -- Domestic incentive financing offers by domestic automakers this year, including zero percent 72-month loans, have helped make six-year car loans the most popular terms for new vehicle loans originated so far this year, surpassing even the previous most common loan term, 60 months.
A report by Power Information Network, a division of J.D. Power & Associates, shows so far this year, 40.6% of all new vehicle loans were for terms of 72 to 77.9 months, compared with 38.6% of loans for 60-65.6 months.
Two years ago, 60-month loans comprised nearly half--49.7%--of all loans, while 72-month loans accounted for less than a third, or 30.6%, according to PIN.
Six-year loans have also been becoming increasing popular for used vehicles. In 2004 less than a fifth of the loans were for 72-77.9 months, but so far this year the loan terms have accounted for a third of used car loans.