Is a 97 Month Car Loan For You?
For new car buyers, the need to keep the monthly auto payment as low as possible is often the deciding factor when purchasing. The majority of car loans have been between 59 and 60 months, according to industry experts. But with the average new car price over $31,000, some buyers need a different loan package to manage the cost.
The growing trend is for longer loan repayment plans. In the last fiscal quarter of 2012, the average loan length had edged up to 65 months. This increase lead to a slightly lower payment for most borrowers, allowing them to purchase more expensive vehicles.
A growing number of loans were as long as 84 months and surprisingly, some dealers were offering loans as long as 97 months. The downside is it will take buyers longer to reach the point where one owes less on the vehicle than its current value.
Introducing the 97-month car loan