 TITLE: What’s the Average Length of a Car Loan? CONTENT: How to Choose the Right Auto Loan Term for You\n----------------------------------------------\nWhen considering an auto loan, it's important to understand the role loan term plays in balancing the amount of the monthly payment against the total cost of the loan—and to determine how much car you can really afford, and whether the \"savings\" you'll see with lower monthly payments are worth the long-term interest charges.\nIf manageable payments are pulling you toward an auto loan with a term greater than 72 months, here are some ideas for rethinking the purchase, and perhaps steering toward a loan with a shorter payment term:\n*   **Consider a used vehicle.** New vehicles are notorious for losing significant market value within the first year after purchase, so one that's a year or two old may come with a significantly lower sticker price. Many are even still under their original manufacturer warranties.\n*   **Increase your down payment.** If you can add another 5% to 10% of the vehicle cost to your down payment, you'll reduce the amount you have to borrow—perhaps making the payments on a shorter-term loan more practical for you.\n*   **Get the best deal you can.** Always apply to multiple lenders when seeking an auto loan to be sure you get the best interest rates available to you, and be prepared to drive a hard bargain when negotiating purchase terms.\nIf the interest rates you're offered turn out to be higher than you'd like and you can afford to wait six months to a year before making your purchase, consider taking steps to strengthen your credit scores. Auto lenders, like other creditors, typically use credit scores to help set the interest rates they charge, so building up your credit score could mean lower interest rates. Lower interest rates mean lower monthly payments, which could help you afford a loan with a shorter payment term.\nThe growth in popularity of longer-term auto loans isn't a trend all car buyers should want to be part of. If you're planning to buy a car, look past the longer-term financing options many dealers are touting, and try to find a shorter-term loan that meets your needs. END