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. It's not a hard sell. Dealers simply direct a shopper's attention to the monthly payment. Then, the car that might bust a budget with payments over three years seems quite manageable when spread out over five or six years.