A 72- or 84-month loan on a used car isn't automatically a mistake, but it usually costs more in total interest and keeps you owing more than the car is worth for longer. The CFPB says plainly that a longer term can lower the monthly payment while you pay more interest over the life of the loan, and that it puts you at risk for negative equity. On a car that's already a few years old, that risk lines up badly with the years when repairs start showing up.
The finance office will almost always show you the payment first. So let's put the other numbers on the table: total interest, and what you'd still owe a few years in.
Long terms are now normal, which is exactly why you should check them
According to a Wall Street Journal Buy Side piece citing Experian data, the average auto loan term for a used vehicle was 67.68 months in 2025, and 68.94 months for new. That's close to six years on average. The same article notes common terms range from 36 to 84 months, with some lenders going as long as 96.
This isn't a new trend. In a release dated November 2017, the bureau found roughly 42 percent of new auto loans carried a term of six years or longer, compared with 26 percent in 2009. It also found loans of six years or longer had default rates above 8 percent in recent years, versus closer to 4 percent for shorter loans. Those are older numbers, and that's the point: the stretch has been building for a long time.
A worked example (example numbers, not a quote)
These are example numbers I picked to make the math easy to follow. Your rate, price, and term will be different. Say you finance $22,000 on a used car at 9% APR with no fees rolled in. Here's what standard amortization gives you:
- 48 months: about $547.47 a month, about $4,278.60 in total interest.
- 60 months: about $456.68 a month, about $5,401.03 in total interest.
- 72 months: about $396.56 a month, about $6,552.45 in total interest.
- 84 months: about $353.96 a month, about $7,732.62 in total interest.
Going from 60 to 84 months drops the payment by about $102.72 a month and costs about $2,331.59 more in interest. That's the trade most people never see written down, because the conversation at the desk is about the monthly number.
Now look at the balance after three years, which is roughly when a lot of people start thinking about trading. On the 60-month version of this example you'd still owe about $9,996.42. On the 84-month version you'd owe about $14,223.79. Same car, same rate, same three years of payments, and about $4,227 more still owed. If the car's market value at that point is below your payoff, you're upside down, and the CFPB's own example of negative equity is simply owing $10,000 on a car worth $8,000.
The CFPB makes the same kind of comparison with its own numbers. Its sample uses a $20,000 loan at 4.75% and shows $1,498 in interest over three years versus $3,024 over six, more than twice as much.
Why older used cars make the long term worse
A new-car buyer on an 84-month loan is at least starting with a car under factory warranty. On a used car, part of the loan runs into years when tires, brakes, a battery, and bigger repairs come due, and you're still making the payment. The CFPB's 2017 release also noted that the average length of vehicle ownership was about 6.5 years, so many people end up still owing after they're done with the car.
Look, this is where vehicle history matters more than people think. If the car carries an accident record or a title brand, its resale value can take a hit that has nothing to do with your payments, and the gap between payoff and value gets wider. Checking before you sign is cheaper than discovering it at trade-in.
We're a licensed reseller of CARFAX and AutoCheck reports and have no tie to CARFAX, AutoCheck, or Experian. We don't offer free full reports, and anyone advertising a free official one deserves suspicion. Through us, single reports are about $5.50 as a guest or about $4.50 for members, with a two-report bundle at about $6.75; buying direct tends to run $39.99 to $44.99. Confirm at checkout before you pay, since our prices can change. And if a dealer hands you a "clean" printout with no VIN visible, pull your own.
Gap coverage and negative equity go together
The CFPB describes GAP insurance as covering the difference between what you owe and what your insurance pays if the car is stolen, damaged, or totaled. It's optional, and the bureau says lenders may set varying prices, so shop it. On a long loan you're more likely to be in that gap for more of the term. Our gap insurance guide for used cars covers when it's worth paying for.
Rolling an old loan into a new one makes everything above worse. If you're carrying a balance from your current car, read our post on negative equity on a trade-in before you let anyone fold it into a 72- or 84-month note.
If you take the long term anyway, protect yourself
Honestly, sometimes the longer term is the only way the budget works, and that's a real situation. A few things make it less risky:
- Check for a prepayment penalty. If you can pay extra or pay it off early without a fee, the long term becomes a safety valve. See our prepayment penalty explainer.
- Compare the rate, not just the payment. The CFPB says to compare APR, interest rate, loan length, and total amount financed. If the dealer is arranging the loan, our post on dealer interest rate markup explains how the rate you're offered can differ from what the lender would approve.
- Negotiate the total price first. Settle the out-the-door price before anyone mentions terms, so a longer loan can't hide add-ons.
- Put more down if you can. A bigger down payment shortens the time you spend upside down.
The CFPB also mentions that some experts recommend keeping auto loans to five years or less. It's a guideline, and one worth testing your numbers against before you sign in November 2026 or any other month.
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