Cars and Drivers

These Are the Car Brands With the Longest Loan Terms

Douglas A. McIntyre

Published: November 9, 2021 9:30 am

Auto loans are a part of the car sales process and can be categorized by duration and loan rate. It is not unusual for a loan duration to reach 72 months (many people do not own a new car that long). Loan rates can be as low as zero.

One good example of long-term loans and low interest rates is Chevy’s current offer on its 2022 Trax small crossover. The offer is 0% financing for 72 months.

One reason car companies offer attractive loans is that they often own the firm that makes the loan. This is a way for the manufacturer to make more money. For example, Mercedes has a division called Mercedes-Benz Financial Services.

LendingTree looked a loan duration by state in its “Where Borrowers Are Taking Out the Longest Auto Loans” study. LendingTree points out that: “As the prices of new and used cars skyrocket, so, too, are average auto loan lengths. Since long-term auto loans can mean lower monthly costs, car buyers may favor or need the extra time to afford vehicle purchases.” They also cautioned that these loans can be expensive due to accrued interest.

To make its determination, LendingTree looked at 29,000 auto loans closed between October 12, 2018, and October 12, 2021. It reviewed loans that were over 60 months and those with terms over 72 months on slightly different criteria. For 60 months or more, the metric was percentage of loan terms. For 72 months, the metric was the percentage of all loans that fell into the category. The universe was the 48 largest metros.

The same study looked at the car models with the longest loans. The brand with the longest loan duration is Tesla at 67.1 months. Here are the 20 car brands with the longest loan terms:

• Tesla (67.1)
• Ram (66.3)
• Kia (64.8)
• GMC (64.6)
• Land Rover (64.3)
• Nissan (64.0)
• Cadillac (63.9)
• Dodge (63.7)
• Infiniti (63.6)
• Chevrolet (63.5)
• Jeep (63.4)
• Mitsubishi (63.4)
• Hyundai (63.1)
• Ford (63.0)
• Buick (62.4)
• Porsche (62.4)
• Jaguar (62.3)
• Mercedes-Benz (62.3)
• Volkswagen (62.3)
• Acura (62.1)

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