In today’s world, car ownership has become a necessity for many individuals and families. With the cost of vehicles on the rise, it’s no surprise that most people turn to car loans to finance their purchases. However, as the price tags of cars increase, so does the length of the loans that borrowers find themselves tied to. Average car loan length statistics have become an important metric for both lenders and borrowers. In this blog post, we will dive into the world of car loan statistics, exploring the average durations of car loans and uncovering the implications for borrowers and the industry as a whole. So, buckle up and get ready for a journey through the numbers behind car loan lengths.
The Latest Average Car Loan Length Statistics Explained
The average length of an auto loan term for a new car in the U.S is approximately 69 months.
The statistic “The average length of an auto loan term for a new car in the U.S is approximately 69 months” means that, on average, when people in the U.S purchase a new car and finance it with a loan, they typically agree to a repayment period of around 69 months. This statistic provides an insight into consumer behavior and preferences when it comes to financing their vehicle purchases. It suggests that individuals in the U.S often opt for longer loan terms, likely because it allows for lower monthly payments. However, it also indicates that buyers may be paying more in interest over the course of the loan due to the extended repayment period.
For Q3 2020 in the US, over 66.5% of new vehicle loans had terms of over 60 months.
The statistic indicates that during the third quarter of 2020 in the United States, a significant majority of new vehicle loans, specifically over 66.5%, were structured with repayment terms lasting longer than 60 months. This suggests that a substantial portion of consumers purchasing new vehicles opted for extended loan durations, likely in order to lower their monthly payments. This trend could be attributed to various factors, such as rising vehicle prices or the desire to afford more expensive models while keeping the monthly budget manageable. However, it also highlights the potential financial implications of such decisions, as longer loan terms often result in higher overall interest costs.
In 2019, loans with terms ranging from 61 to 72 months made up 42.1% of all new car loans.
In 2019, the statistic reveals that 42.1% of all new car loans were structured with repayment terms ranging from 61 to 72 months. This means that a significant portion of individuals who purchased new cars opted for an extended loan duration, typically around five to six years. This statistic implies that a considerable number of buyers were willing to commit to longer loan terms in order to manage the cost of their vehicle purchases over a longer period of time.
The percentage of auto loans with a term over 73 months was 30.6% as of Q4 2018.
In the fourth quarter of 2018, it was found that approximately 30.6% of auto loans had a repayment term exceeding 73 months. This statistic indicates the proportion of car loans that require borrowers to make monthly payments for a duration longer than six years and one month. This suggests that a considerable percentage of individuals seeking auto financing chose longer loan terms in order to afford higher-priced vehicles or to lower their monthly payment obligations.
Virtually no auto loans currently being issued are below 36 months in length.
This statistic indicates that almost all auto loans that are currently being issued have a minimum duration of 36 months. In other words, it is rare to find auto loans with a duration of less than 36 months. This suggests that lenders and borrowers are increasingly opting for longer loan terms, likely due to factors such as the rising cost of vehicles and the desire to spread out payments over a longer period of time.
In Q2 2019, the average loan amount for a new vehicle reached an all-time high of $32,480.
The statistic states that during the second quarter of 2019, the average amount of money borrowed for purchasing a new vehicle reached the highest point ever recorded, with an average loan amount of $32,480. This means that on average, individuals taking out loans to buy new vehicles were borrowing a larger amount of money than ever before during this specific time period. It indicates a potential trend of increasing vehicle costs or consumers’ willingness to take on larger loan amounts for their vehicle purchases.
In 2019, 32% of car buyers were still paying off their trade-ins, up from 25% in 2015.
This statistic indicates that in 2019, 32% of car buyers still had outstanding payments remaining on their previous vehicle, which they traded in for a new car. This percentage is an increase from 25% in 2015. In other words, a larger proportion of individuals who purchased a new car in 2019 had not yet completely paid off their old car compared to those who bought a new car in 2015. This suggests that more people are carrying over debt from their previous vehicle when acquiring a new one, potentially indicating a shift in the financial behavior and circumstances of car buyers over time.
In 2020, the percentage of 25 to 36-month loan terms for used cars was only about 1%.
The statistic states that in 2020, only around 1% of used car loans had a loan term between 25 to 36 months. This suggests that the majority of used car loans in 2020 had loan terms that were either shorter or longer than this range. It may indicate that borrowers either preferred shorter loan terms, such as 12 to 24 months, or longer loan terms exceeding 36 months. The low percentage for this specific loan term range suggests that it was not a popular choice among borrowers in 2020.
In 2020, the average new-car loan term was 71.54 months, up from 70.61 months in 2019.
The statistic highlights that in the year 2020, the average new-car loan term, which refers to the duration over which borrowers were given to repay their car loans, increased to 71.54 months from 70.61 months in 2019. This increase suggests that car buyers were given slightly longer repayment periods in 2020 compared to the previous year. This information could be useful for individuals interested in understanding the prevailing loan terms for purchasing new cars during the given time period.
In 2020, the average used-car loan term was 65.85 months, up from 65.30 months in 2019.
The statistic indicates that in the year 2020, the average duration of used-car loans was 65.85 months, which increased slightly from 65.30 months in the previous year, 2019. This statistic provides insight into the trend of loan terms for used cars and suggests that lenders may be offering slightly longer loan periods to borrowers. It is important to note that this statistic only represents an average, and individual loan terms may vary significantly.
In July 2020, the percentage of new-car loans with 72-month terms was 34%, and those with 84-month terms was 27%
In July 2020, a statistic showed that a significant proportion of new-car loans had longer repayment terms. Specifically, 34% of new-car loans had a term of 72 months (or 6 years), while 27% of new-car loans had a term of 84 months (or 7 years). This indicates that a considerable portion of car buyers opted for longer loan terms, allowing them to spread out their loan payments over a longer period of time. It could suggest that individuals may prefer lower monthly payments, even if it means making payments for a longer duration. This information is valuable for lenders, car manufacturers, and industry analysts, as it provides insights into consumer preferences and potential trends in the automotive lending market.
In 2019, around 70% of new cars were financed, with the average loan term being around 69 months.
The statistic reveals that in the year 2019, approximately 70% of individuals who purchased new cars opted to finance their purchases. This suggests that the majority of car buyers did not pay for their new vehicles in full upfront, but instead opted for loans or financing options. Furthermore, the average loan term for these financed cars was approximately 69 months, indicating that most borrowers chose longer time periods to repay their loans. This statistic highlights the significant role of financing in the car-buying process and provides insights into the prevailing trends in the automotive industry in terms of payment preferences and loan durations.
On average, Americans owe $17,927 in auto loan debt, as of Q1 2020.
This statistic indicates that the average amount of debt held by Americans in terms of auto loans is $17,927 as of the first quarter of 2020. This means that when considering all Americans who have auto loans, the typical amount owed is approximately $17,927. This figure takes into account various factors such as the total outstanding auto loan balances and the number of individuals with auto loan debt in the United States. It serves as a helpful indicator to understand the financial situation of Americans with respect to their auto loans.
The average loan amount for vehicles in the U.S. increased by $4,356, reaching $31,455 in 2020.
The statistic states that, on average, the amount of money borrowed for vehicles in the United States increased by $4,356 in 2020, reaching a total of $31,455. This suggests that individuals who took out loans for purchasing vehicles borrowed higher amounts compared to previous years. The increase in the average loan amount may indicate factors such as inflation, the rising cost of vehicles, or a preference for more expensive models. This statistic provides insight into the borrowing habits and financial decisions of individuals in the automotive market in the U.S. during 2020.
Consumer auto loan duration extended to 64 months for used cars in 2016, from 62 in 2009.
This statistic indicates that in 2016, the average duration of consumer auto loans for used cars was extended to 64 months, compared to 62 months in 2009. This suggests that consumers are now taking longer to pay off their used car loans. This increase in loan duration could be attributed to various factors, such as changes in economic conditions, interest rates, and consumers’ financial situations. It is important to note that a longer loan duration can have implications on overall interest payments and the affordability of the loan for the consumer.
In the United States, for 2019, the average loan length for a new car was 69.17 months and for used cars, it was 64.89 months.
The statistic states that in the United States in the year 2019, the average duration or length of time for a loan taken out to finance a new car purchase was 69.17 months, while for used cars, it was 64.89 months. This implies that car buyers who opted for new cars typically took on longer loan terms compared to those purchasing used cars. The statistic provides an indication of the average repayment period for auto loans during that particular year, highlighting differences in borrowing patterns for new and used vehicles in the United States.
Conclusion
In conclusion, examining average car loan length statistics has helped shed light on the evolving trends in vehicle financing. The data clearly indicates that car loan terms have been steadily increasing over time, with more consumers opting for longer repayment periods. While longer loan terms may result in lower monthly payments, it is essential to consider the potential implications, such as accruing more interest over time and being tied to a vehicle for an extended period. It is crucial for individuals to carefully evaluate their financial situation and make informed decisions when it comes to selecting the length of their car loans. By understanding the average car loan lengths and associated statistics, consumers can navigate the auto financing landscape more effectively and make choices that align with their long-term financial goals.
References
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