A record 24% of borrowers chose 84-month terms or longer in the second quarter, according to Experian. New-vehicle loans now average 70.4 months. Used-vehicle loans average 70.1 months, barely behind.
📊 By the Numbers
36% of new-vehicle loans ran longer than 72 months in Q1, up 5 points year-over-year
32% of used-vehicle loans ran longer than 72 months in Q1, up 3 points
60% of F&I teams say extending the loan term is their default tactic for payment shoppers
51% of dealers say negative equity "frequently" complicates trade-ins
40% say it shows up in almost every deal
This isn't a niche financing trend anymore. It's becoming the default answer to an affordability problem that isn't going away.
🎙️ Want the full conversation?
Listen to today's Automotive State of the Union episode for the complete discussion, additional context, and the conversations that shaped our perspective.
The Question Nobody's Answering: How Far Are We Kicking the Can?
Extending a loan term solves today's payment. It doesn't answer what happens three or four years from now, when that customer's equity position hasn't caught up to their loan balance.
