what is the longest car loan you can get

[StTeagan]

The longest car loan term commonly available in the United States is 84 months, or seven years. While some lenders may offer extended terms up to 96 or even 108 months, these are less common and come with significant financial drawbacks. The primary appeal of a long loan is a lower monthly payment, but this is often outweighed by paying substantially more in interest over the life of the loan and the high risk of becoming "upside-down"—owing more than the car is worth.

The trend toward longer auto loans has been growing. According to Experian, the average new car loan term in Q4 2023 was nearly 70 months. The following table illustrates the potential financial impact of choosing a longer loan term on a $35,000 loan with a 7% annual percentage rate (APR).

Loan Term	Monthly Payment	Total Interest Paid	Total Loan Cost
36 months	$1,080	$3,892	$38,892
60 months	$693	$6,579	$41,579
72 months	$597	$7,998	$42,998
84 months	$527	$9,273	$44,273

As the data shows, stretching the loan from 3 to 7 years cuts the monthly payment by more than half, but you end up paying over $5,300 extra in interest. The biggest risk is depreciation. Cars lose value quickly, typically around 20% in the first year. With an 84-month loan, you build equity very slowly. If you need to sell the car or it's totaled in an accident after a few years, the insurance payout or sale price will likely be less than your loan balance, leaving you with debt on a car you no longer have. A shorter loan term, like 60 months, is generally the recommended maximum for a better balance of affordability and financial safety.

[May]

I would be very cautious about taking a loan longer than 60 months. Yeah, the payment looks smaller on paper, but you're just stretching out the pain. The car will be practically worthless from a resale perspective long before you finish paying it off. You'll be stuck in a situation where you can't sell or trade it without writing a check to the bank. It’s a trap that keeps you from moving on to your next vehicle freely. Stick to the shortest term you can realistically afford.

[BrandonLee]

From a purely financial planning perspective, the longest possible loan is rarely the wisest choice. The primary disadvantage is the interest rate. Lenders charge higher rates for longer terms because the risk of default increases over time. You are essentially paying a premium for that lower monthly payment. Furthermore, committing to a seven or eight-year loan imposes a long-term financial obligation that could limit your flexibility for other goals, like saving for a home or investing. The math simply doesn't favor the borrower in the long run.

[CameronAnn]

My main goal was to get my monthly payment as low as possible so I could afford the SUV I needed for my family. The dealership offered me an 84-month loan, and that’s what I took. It worked for my budget at the time. The trade-off, which I understood, is that I’ll be paying for it for a long time. I’m not thinking about resale value right now; I’m thinking about getting through the next few years with a reliable car and a manageable payment. It’s a personal calculation, not just a financial one.

[VonJayce]

Don't just focus on the monthly payment. Ask about the "total cost of financing." An 84-month loan might save you $100 a month compared to a 60-month loan, but you'll pay for two extra years. That adds thousands to the total cost. Also, you'll likely need to factor in the cost of an extended warranty, as the factory warranty will expire long before the loan is paid. This adds another expense. A better strategy is to finance for a shorter term or make a larger down payment to avoid being trapped in a long, expensive contract.