Kasey and Green Light Auto Credit did a fantastic job in helping us a great car!
When using a car loan to purchase a vehicle in the St. Louis area there are a number of factors to consider, including your car loan length. Find out the average car loan length and how that impacts your financing at Green Light Auto Credit.
While 72 months may be the average, there are other car loan length options:
Keep in mind that loan lengths can vary by credit score. The average new-car loan length for drivers with credit scores ranging from 781 to 850 is about 63 months. Meanwhile, for those with not-so-great credit, the average car loan length for a new car is about 72 months. Whether you’re looking for a short term or long term loan, there are a variety of financing options out there around Herculaneum and Florissant.
Like loan lengths, car loan interest rates can and do vary depending on credit score. Naturally, borrowers with higher credit scores typically gain access to lower interest rates, while borrowers with lower credit scores can usually expect higher interest rates. Here’s a quick look at the average interest rates on auto loans per credit score:
There’s also a relationship between the average car loan interest rate and loan term. Long-term auto loans come with lower monthly payments but higher interest rates, while short-term loans come with higher monthly payments and lower interest rates throughout the loan term:
When looking at the length of your loan, you will need to weigh the advantages and disadvantages of short term vs. long terms car loans.
When making financing decisions, be honest with yourself about your car budget, from monthly payments to the total cost of your vehicle loan.
Need help finding the right car loan for your situation? Wondering if you can pay your loan off early? The experts at Green Light Auto Credit can go over all your options to find a loan to match your needs. Contact us today to take the first step in purchasing your next vehicle! If you want to feel even more prepared for your purchase, read up on more helpful advice from our team, like when is the best time to buy a used car.