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The average loan terms for new and used car purchases are 68.26 and 67.57 months, respectively, according to the most recent State of the Automotive Finance Market report from Experian.
Car loans are typically available in twelve-month increments and can last anywhere from two to eight years. A shorter loan term is ideal for paying less overall, but your monthly payments will be ...
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Roughly half of new cars in the U.S. are financed by the captive financing arms of car manufacturers, such as the Ford Motor Credit Company. [4] Captives have a smaller share of the overall car financing market (new and used cars), along with banks, credit unions, and finance companies.
Similarly, a loan taken out to buy a car may be secured by the car. The duration of the loan is much shorter – often corresponding to the useful life of the car. There are two types of auto loans, direct and indirect. In a direct auto loan, a bank lends the money directly to a consumer. In an indirect auto loan, a car dealership (or a ...
Purchasing a used car is usually cheaper than buying a new one. If you finance the vehicle, you'll generally pay less per month, and it won't depreciate as quickly as a new car fresh off the ...
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