How long are car loans?

A used car typically has a shorter and more limited warranty than a new vehicle -- if any warranty exists -- and has a lower probability of lasting the life of a long-term loan. The interest rates on used car loans are typically higher than a new car loan. read more

According to the latest Experian research, new-car loans that are longer than six years now represent 16.9 percent of all new-car loans, a 19.4 percent increase over last year. On the used-car side, 10.1 percent of all used-car loans are longer than six years — an 11.5 percent increase over 2012. read more

Resale value is another reason to steer clear of extra-long car loans. A 5-year-old car is more desirable and more valuable in the used-car marketplace than one that's 7 years old. At five years, a car has lost about 53.5 percent of its new-car value in 2014, says Joe Spina, Edmunds director of remarketing. read more