On average, around 41% of the car loans have a term between 61 and 72 months. By comparison, 30.9% have a loan term of 73 to 84 months, and only 20.1% have 49 to 60 month loans. It’s easy to see why, because you have inexpensive monthly payments the more months you go for. However, you also need to take into account the overall interest rate.

How can you know what is a good interest rate for a 72-month car loan?

The great thing about this is that you get to access all this information online. Many companies have studied the situation and you can identify the average interest rate based on loan length alone. That being said, the average auto loan term for 72 months is around 4.45%.

By comparison, for 60 months you have an average rate of 4.37%, while the 48-month loan terms come with a 4.31%. lastly, 36-month loans are bringing a 4.21% average interest rate. It’s easy to see why a lot of people are trying to figure out what is a good interest rate for a 72-month car loan. The difference between a 36-month and 72-month loan interest rates are not that high, which is why many choose to go for a longer term for their loans.

Who are 72-month car loans suitable for?

If you want a reliable vehicle that’s more expensive, a longer term makes it easy for you to buy that car and enjoy it. On top of that, with a longer loan term like this you can pay off other debts that are a lot more important at this time. This can be a great pick if you have a very limited budget, and you want to buy a more expensive car than what you afford right now.

Should you choose a 72-month loan?

This is a great option if you want to purchase a great vehicle without worrying about expensive monthly payments. Plus, once you learn what is a good interest rate for a 72-month car loan, you will notice that the interest rate difference between 36 and 72 months is not that high. Which is why it makes a lot of sense to pay off the loan in 6 years, it helps you manage your money more efficiently and without any problems.

Of course, you should always shop around to find an even better interest rate. While 4.45% is the average interest rate for a 72-month loan, you can find options closer to 4% as well. It’s important to study the market, ask lenders for quotes, then figure out where you can find the best option to suit your needs!