How Long Should Your Auto Loan Be?

Are you  thinking about buying a car?
You are  probably thinking about financing. You may be trying to get the lowest interest rate or find a good monthly payment. Don't forget  to take in to consideration  how long you plan on paying off your car ( known as your loan term).
Auto loans are structured to offer 12-month increments and last somewhere between two and eight years. This means you'll find available loans of 24 months, 36 months, 48 months, 60 months, 72 months and 84 months. The average new car loan is around 65 months,  while the average used car loan is shorter.

When you're buying your next auto and  considering a  loan, opt for the shortest term and the best possible interest rate. This might not be the most appealing idea, considering it will increase your monthly payments. In the long term, you'll thank yourself when you've saved thousands in interest and paid off your car years before you thought you would.

Car-Lotta Credit and Car Sales is an in house finance company- We structure short term  auto loans for our customers.