Car loans with seven-year terms are becoming more of the norm as consumers yearn for lower monthly payments.

That's according to Experian Automotive latest State of the Automotive Finance Market report released last week, which showed the average car loan term in the first quarter reached 66 months for the first time.

The analysis also showed that loans with terms extending out 73 to 84 months made up 24.9% of all new vehicle loans originated during the quarter, growing 27.6% since Q1 2013. "As the cost of purchasing a new vehicle continues to rise, consumers clearly are stretching the loan term to help lower monthly payments, keeping them at a manageable level," said Melinda Zabritski, Experian Automotive's senior director of automotive credit.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.