More new-car buyers are signing up for a longer ride.

Answer: 

About 36%

Questions: 

• Is stretching a car loan past six years a reasonable way to afford a car or a mistake buyers should avoid?
• What tradeoffs come with choosing a car loan that lasts longer than six years?

• What should you know about the car before agreeing to a six-year-plus car loan?

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom. 

Behind the Numbers: (Experian)

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.

About the Author

Dave Martin

Dave joins NGPF with 15 years of teaching experience in math and computer science. After joining the New York City Teaching Fellows program and earning a Master's degree in Education from Pace University, his teaching career has taken him to New York, New Jersey and a summer in the north of Ghana. Dave firmly believes that financial literacy is vital to creating well-rounded students that are prepared for a complex and highly competitive world. During what free time two young daughters will allow, Dave enjoys video games, Dungeons & Dragons, cooking, gardening, and taking naps.

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