New Vehicle Loans Continue to Get Longer

New Vehicle LoansNew vehicle loans are being stretched more and more as time goes by. According to a recent report in the Detroit News, the average new vehicle loan is now for more than five years – a big departure from days gone by when most car loans were either four or five years.

Today, there are car loans for six and seven years – and a few for even longer periods than that. This, of course, is part of the reason the automotive industry continues its recovery. The article cites an example of how these extended loans give the consumer additional buying power. A 2015 Ford Fiesta SE hatchback (with 10 percent down and 1.9 percent financing) can be had for around $320 per month on a four-year loan.  But a much larger vehicle, the midsize 2015 Fusion SE, is just $38 more per month when financed for 4.9 percent over six years. Read More