Stretching the Payments: How Long Is the Average Car Loan in 2026?

Car shoppers are borrowing for longer than ever, and the numbers show it.

The Short Answer

Most U.S. car buyers now spend close to six years paying off a vehicle.

• New cars: about 69.5 months on average
• Used cars: about 67.9 months on average

These figures come from Experian data reported by ConsumerAffairs.

Why Terms Keep Getting Longer

Higher prices are the main reason buyers are stretching their loans.

The average new-car loan now sits at $43,610, with a monthly payment of $765. Experian's Q2 2026 data shows the average new-vehicle loan amount climbed $1,715 year-over-year to $43,610, while the average monthly payment rose $16 to $765.

Used-car buyers are feeling it too, with an average loan of $27,852 and a $542 monthly payment.

A longer term is a common way to keep those payments manageable.

Experian's Q1 2026 report found 35.55% of new vehicles had loan terms longer than six years, up from 30.83% a year earlier.

How Credit Score Plays a Role

Your credit tier doesn't set your loan length directly, but it shapes the choices you make.

Borrowers with weaker credit often face higher rates, so they may stretch the term to lower the payment.

Here is how average new-car terms break down, per ConsumerAffairs' reading of Experian's data:

• Super prime (781–850): 64.88 months
• Prime (661–780): 72.43 months
• Near prime (601–660): 75.57 months

Used-car terms vary much less across credit tiers, ranging from about 66 to 69 months.

The Trade-Off: Lower Payments, Higher Costs

A longer loan eases your monthly budget, but you pay for that relief in interest.

You also face a higher risk of owing more than the car is worth, known as being "underwater."

ConsumerAffairs suggests a down payment of at least 20% to reduce that risk.

To show the cost, I ran a standard amortization calculation on a $43,000 loan at 11.4% interest with nothing down:

• 36 months: about $1,416 a month, roughly $8,000 in total interest
• 60 months: about $944 a month, roughly $13,600 in total interest
• 84 months: about $745 a month, roughly $19,600 in total interest

Note: the sample table in the original article doesn't add up when checked, so I used my own calculations here. Treat them as estimates and confirm with your lender.

When a Longer Loan Can Make Sense

A longer term isn't always a bad choice.

An industry expert quoted by ConsumerAffairs says it can work if you have a strong rate, a solid down payment, and plan to keep the car well past payoff.

It's riskier if you trade in your car every few years and keep rolling old debt into new loans.

Smart Moves Before You Sign

• Aim for a 20% down payment where possible.
• Keep the term at 60 months or less if your budget allows.
• Compare offers from several lenders before committing.
• Consider refinancing later if rates drop.

On that last point, Experian reported that the average refinance rate in Q2 2026 was 7.97%, compared to a 10.40% average original rate, saving consumers about $83 a month.

A Note on the Data

The 69.5- and 67.9-month averages are as reported by ConsumerAffairs, which cites Experian's 2026 data.

For comparison, Experian's Q1 2026 report put the average new-vehicle term at 69.48 months and the used-vehicle term at 67.73 months.

I couldn't open Experian's full Q2 report directly, so the Q2 term figures rest on ConsumerAffairs' reporting.

This article is for general information and isn't financial advice.

References

1. ConsumerAffairs. "What's the Average Car Loan Length? (2026)." Updated Nov. 3, 2026. https://www.consumeraffairs.com/finance/average-car-loan-length.html
2. Auto Remarketing. "Experian sees refinancing continue to ripen in Q2." Aug. 27, 2026. https://autoremarketing.com/subprime/experian-sees-refinancing-continue-to-ripen-in-q2/
3. Experian. "New Experian Automotive Report Shows Nearly One-Third of Automotive Loan Terms Are Longer Than Six Years." May 28, 2026. https://experianplc.com/newsroom/press-releases/2026/new-experian-automotive-report-shows-nearly-one-third-of-automot
4. Experian. "State of the Automotive Finance Market Report: Q2 2026" (the original report, cited by ConsumerAffairs; I could not open it directly). https://www.experian.com/content/dam/noindex/na/us/automotive/finance-trends/2026/experian-safm-q2-2026.pdf

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