New Experian Automotive Report Shows Nearly One-Third of Automotive Loan Terms Are Longer Than Six Years
As affordability remains a top priority across the automotive market, new data shows consumers continuing to lean on longer loan terms to help maintain manageable monthly payments. According to Experian’s (LSE: EXPN) State of the Automotive Finance Market Report: Q1 2026, the percentage of new vehicles with loan terms more than six years old reached 35.55% in Q1 2026, up from 30.83% a year ago. Additionally, new loans with terms greater than 85 months increased from 2.95% to 3.33% over the same period.
A similar pattern was observed in the used vehicle market. The percentage of used vehicles with loan terms more than six years hit 31.54%, up from 28.60% in Q1 2025. Meanwhile, used vehicles with loan terms more than 85 months grew to 1.40% in Q1 2026, from 1.32% the year prior.
“Affordability continues to shape financing decisions across the automotive market,” said Melinda Zabritski, Experian’s head of automotive financial insights. “While shoppers continue to lean toward larger, more expensive vehicles, we’re seeing more consumers take advantage of longer-term loans to offset rising monthly costs.”
