You know what, let's read that again. A smidgen over 5.5 years to pay off a car? Now let's read this: http://www.thefiscaltimes.com/2015/07/29/Here-s-Why-Americans-Are-Keeping-Their-Cars-Longer-Ever Ooooooooof. That matches up for not quite a year of being paid off before jumping onto a new model.The average term for a new-car loan is now 68 months and some loans stretch as long as seven years.
The average term for a new-car loan is now 68 months and some loans stretch as long as seven years.
The average length of ownership of a new vehicle reached 6.5 years in the first quarter of 2015, more than two years longer than in 2006.
Yea that freaked me out as well. I got a 60 month loan at .5% interest and was freaking out over the length of the term. I've already paid all the interest on the note, though, so everything I do now is principle. Then again I intend to keep this car 12-15 years also. Even though I can afford to, I cannot justify only owning a car 5-7 years.