Tesla buyers have the longest loan terms
Tesla not only tops the charts for sales, but also when it comes to term loans. A study carried out by an online lender Loan tree showed that Tesla buyers are willing to take a five-and-a-half-year loan to be able to drive one of the electric vehicles.
To get the data, Lending Tree looked at 29,000 auto loans from October 2018 to October 2021. Loans from 30 auto brands covering everything from Tesla to Ram to Audi were examined. Tesla came in number one with its buyers averaging 67.1 months on their loan terms. Ram was just behind at 66.3 months.
Surprisingly, terms of more than five years remained the norm for most. Each brand on the list has loan terms of over 60 months on average. No one has to cross yet 70 months.
ButRankings for some brands are not where you think they would be. Nissan for example, a brand that made it easier for people to get longer loans earlier this year, came in sixth place with an average of 64 months. Toyota was at the bottom of the list at 61.6 months. Porsche and Buick tied for 15th at 62.4 months.
There was only one brand with terms of less than 60 months: Mini. Its buyers have an average of only 59.7 months over the term of their loan.
With the prices of new cars average over $ 45,000, longer loan terms are not much of a shock. Tesla buyers face their own unique setbacks like the price on their vehicles having been raised several times. The Model 3 seen a $ 5,000 increase in at the start of this year only. You can’t even plus get a Model 3 for under $ 40,000. And if these trends continue, it may not be long before we move beyond those 67+ months to Tesla owners at 72 and 75 month loans.