Tesla buyers have the longest auto loans, LendingTree study finds
Loan term lengths have been increasing over the past year
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Tesla owners are in it for the long haul.
According to a new report from LendingTree, buyers of the premium electric cars take out loans with an average term of 67.1 months, which is the longest of all brands.
Ram truck and Kia customers follow at 66.3 and 64.8 months, while Lexus and Mini owners have the shortest terms at 60.4 and 59.7 months.
The study looked at 29,000 loans that originated on the platform between Oct. 2018 and Oct. 2021 and found the overall average at 62.9 months.
Term lengths had been trending downward through November 2020 when they hit a low of 59.9 months during the period of the study, but began rising with car prices and peaked at 65.6 months in July of this year.
The states with the longest loans were Maryland and Iowa, tied at 64 months, and Florida and Arizona, tied at 64.7 months.
Major metropolitan business hubs tend to have shorter loans, with San Francisco leading the way at 60.2 months ahead of New York and Milwaukee at 61 months and Detroit at 61.1 months.
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LendingTree says areas with higher median incomes often have the shortest loans because buyers are likely to put down a larger down payment or make larger monthly payments.