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How long should a car loan be?
Edmunds advises 60-month loans to reduce total interest costs and negative equity risks amid rising car prices and a 21.5% share of 84-month loans in Q2 2025.
- Edmunds recommends a 60-month auto loan if you can manage it, with an average finance amount of $38,285, about $730 monthly, and a total finance cost of $7,064.
- Edmunds recommends a 60-month auto loan as rising tariffs and vehicle costs, with interest rates at 6.9% and payments of $766, push buyers toward longer terms.
- Longer loan terms, including 72- and 84-month options, now make up a substantial share of financing with average financed amounts of $50,959 and APRs at 8.1% in Q2 2025.
- Longer loans slow the pace at which drivers build equity in their cars, delaying flexibility and raising total interest costs, with an average 84-month loan adding about $5,000 in extra finance charges.
- The used-car market remains inflated due to reduced leasing a few years ago, with buyers financing $30,009 at 10.8% APR over about 66 months and 29.4% rolling negative equity.
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21 Articles
21 Articles
Coverage Details
Total News Sources21
Leaning Left2Leaning Right0Center18Last UpdatedBias Distribution90% Center
Bias Distribution
- 90% of the sources are Center
90% Center
C 90%
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