Tesla is not only topping the sale charts, but also lending term charts as well. A study done by online lender Lending Tree showed that Tesla buyers are willing to take on a loan of five and a half years to be able to drive one of the EVs.
To get the data, Lending Tree looked at 29,000 auto loans from October 2018 to October 2021. Loans from 30 auto brands spanning everything from Tesla to Ram to Audi were examined. Tesla came out at number one with its buyers averaging 67.1 months on their loan terms. Ram was right behind at 66.3 months.
Surprisingly, terms of over five years have stayed the norm for the most part. Every brand on the list has loan terms averaging over 60 months. No one has yet to cross 70 months.
But some brands’ rankings are not where you think they would be. Nissan for instance, a brand that made it easier for folks to get longer loans earlier this year, came in at sixth place with a 64-month average. Toyota was way down the list at 61.6 months. Porsche and Buick tied for 15th place at 62.4 months.
There was only one brand whose terms came in under 60 months: Mini. Its buyers average just 59.7 months on their loan terms.
With new car prices averaging over $45,000, longer loan term lengths aren’t really a shock. Tesla buyers face their own unique setbacks like the prices on their vehicles having been raised multiple times. The Model 3 saw a $5,000 increase in the earlier part of this year alone. You can’t even get a Model 3 for under $40,000 anymore. And if these trends continue, it may not be long before we’re soaring past those 67+ month terms for Tesla owners to 72 and 75-month loans.