Car loans are getting longer, with some stretching to seven years, making monthly payments more manageable but adding thousands in interest costs. In 2025, the average new car payment rose to $1,000, with an average loan amount of $42,388 and an APR of 7.2%. About one in five buyers opted for 84-month financing.

Comparing a seven-year car loan to a five-year one based on a vehicle price of $49,077, the longer loan lowers monthly payments by $215 but costs $6,109 more in interest. Credit score impacts APR, meaning higher costs over the loan’s life. Results vary based on individual financial situations.

Read more at Yahoo Finance: Here’s How Much More Interest You’ll Pay for a 7-Year Car Loan vs. a 5-Year Loan