Who sets the car loan term length?

[bj_osterhout]

The average is 60 months right? Who picks the term length? You or the dealership/financier? If you have bad/no credit do they usually make the term shorter/longer ?

[shaelene]

If you ask you can change the term, but mostly yes it is 60 months. As for bad credit.... it depends on the financier and how much of a risk you are, it can also alter the intrest rate. It also depends on the vehicles age. In Australia a vehicle can only be financed upto 13 years. eg if the car is over 10 years then the term may only be 3 years. After a car is 13 or 14 years or older you may need to get a personal loan because a financier can most times no longer be of assistance. That is why older vehicles are rearly seen in dealerships.

[jay]

You pick the term. You can get anywhere from 36-84 months depending on the car and your credit. Bad credit usually requires shorter term financing, no longer than 60 months. 72 month financing has become very popular as cars have become more reliable over the long term.

[lmkspj]

there are 3 parties working on a deal when purchasing a car. the sales person, financing department, and the bank who will finance the final deal. The finacing depatment has a list of banks they deal with to call when someone comes to buy a car. That list is composed of banks that will either deny or approve you. if one doesnt work they try another. These banks have adjusters who look at your history and credit to determine how much of a liability you are. If you have good gredit and pay all your bills on time then your a low liablity and therefore you get a better rate 3.5-8.5. anything higher is low or bad credit which clearly means the opposite. what most people dont know is that you can eliminate the finacing department at the dealership by doing the leg work your self. call the same banks yourself and get a rate that you are comfortable with so that you can hagle the price when you walk through the door. this gives you the advantage to set a price and get what you want. eliminate dealer fees and all the other fees they include by doing this. its can save you some big bucks and set you up with a lower monthly.