Question of the Day: What Lengths Will You Go to Buy a New Vehicle?
New vehicle sales are down through the first six months of 2026, albeit only slightly. However, the larger issue facing automakers as the try to navigate the U.S. market is affordability. The average transaction price for a new vehicle, according to Cox Automotive, currently sits just under $50,000. It’s risen by a third during the past few years to this new all-time high.
With interest rates elevated, prices higher courtesy of inflation and tariffs (in some instances), consumers are looking for ways to lower their monthly payment. The easiest way to do that is to put more down on your vehicle; however, Americans are shopping monthly payments not a sticker price and the simplest way to cut that number is to extend the term of the car loan.
We’re all familiar with 48-month and even 60-month loans. However, the 72-month — 6 years — and even 84-month loan have become increasing popular. In fact, 24 percent of new car loans during the second quarter were 84 months, according to Edmunds. The average loan term during the quarter was 70.4 months, up 0.6 months compared to a year ago.
With Independence Day sales in full swing, we ask: How long are you willing to finance a new vehicle for now?
[Images: Shutterstock; Stan McNabb Chevrolet]
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Michael Strong has spent more than 25 years writing about the automotive industry. A Detroit-area native, he’s written about everything from local car shows to product reviews to financial news. Currently he writes and edits for a variety of national and local publications. He’s also a longtime member of the Automotive Press Association and the International Motor Press Association, and a graduate of Georgia Southern University. Hail Southern! Despite a love for ’70s land yachts and BMWs from the late ’80s and early ’90s, his personal vehicle is neither of those.
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None...I have zero interest in anything new (well, *maybe* a Slate truck but I seriously doubt it). Very little need for a car outside of getting to/from work, and that ends in less than 3 years. At that point my current daily driver and the pre-2000s classics I've restored will meet my needs.
Financing a vehicle for more than twice the length of the new car warranty is insane. I cannot imagine being on the hook for a major repair and still having 4 more years of car payments coming my way.