As the life expectancy of a vehicle on the road is getting longer, local car dealers are seeing consumers being willing to extend their financing terms to lower their monthly payments. The average monthly car payment was $554 for a new vehicle and $391 for used cars in 2019, according to creditkarma.com. Danielle Harju, finance manager at Jorns Chevrolet in Kewaunee, says the 60-month finance program is the most common at the dealership.
Harju says lower interest rates are making it more attractive for buyers to finance their vehicles longer as well. Longer financing terms typically have higher interest rates. Harju says just because buyers qualify for long loans does not mean they should take them because the shorter the length the quicker the equity buildup in your car.