The numbers, from the Consumer Bankers Association's 1999 Automobile Finance Study, are startling. More than 20 percent of new-vehicle loans were for 60 months or longer. Sixty percent of all used-car loans had terms of 49 months or longer. Twelve percent of used-car loans were for five years or longer. The reasons for this swing toward longer financing are many.
Experts cite everything from the increased durability of cars to easier lending standards.
Now more banks are offering them. For a consumer who wants one, it's not that hard to find. People get their hearts set on a car and then try to find a way to afford it. Dealers and lenders are more than willing to help. A dealer wants you to buy a more expensive car and lenders like longer terms because of the additional interest.