FI showroom red and grey logo
MenuMENU
SearchSEARCH

Edmunds: Term Lengths Stretch to All-Time High in June

At a record 69.3 months, average new-vehicle finance terms have stretched 6.8% from five years ago. The average amount financed and average monthly payment also registered new highs.

by Staff
July 6, 2017
Edmunds: Term Lengths Stretch to All-Time High in June

 

2 min to read


SANTA MONICA, Calif.  ─ Car buyers are pulling all levers to keep their monthly payments manageable as vehicle prices continue to rise. In June, one of those levers, average new-vehicle finance terms, stretched to an all-time high of 69.3 months, according to Edmunds.

The average, which is up 6.8% from five years ago, was recorded during the same month the average amount financed registered its biggest uptick in 2017. It rose by $631 from May to $30,945. Also setting a new mark for the year was the average monthly payment, which rose from $510 in May to $517.

Ad Loading...

"Stretching out loan terms to secure a monthly payment they're comfortable with is becoming buyers' go-to way to get the cars they want, equipped the way they want them," said Edmunds Executive Director of Industry Analysis Jessica Caldwell. "It's financially risky, leaving borrowers exposed to being upside down on their vehicles for a large chunk of their loans, but it's also a sign that consumers are still confident enough in the economy to spend more on their vehicles and commit to paying for them longer."

Edmunds also reported that the average APR dipped just below 5% for the first time since February, averaging 4.96% in June. The APR has increased 5.7% from a year ago and 13.6% from five years ago.

On Monday, Kelley Blue Book reported that June’s average transaction price grew by $511 from a year ago to $34,442, which was slower than normal for the month of June. The average, however, remained relatively flat with May.

“Transaction prices grew more slowly than normal in June, increasing less than 2 percent,” said Kelley Blue Book analyst Tim Fleming. “As the industry enters a ‘post-peak’ environment for new-car sales, more pressure will be placed on transaction prices.”

More F&I

Laptop computer on a desk with a notepad and pen next to it and a whiteboard in the background
Digital•by Rick McCormick•October 15, 2026

AI: Facilitator, Not Fixer, in F&I

The dealerships that thrive in the years ahead will be those that embrace technology while continuing to invest in the people who make customer interactions count.

Read More →
Headshot mockup thumbnail.
F&I•October 1, 2026

Modern Technology Objection Handling

In this video, Trent White shares how to confidently handle technology-based objections by helping customers understand the value of protection, even with modern vehicle technology.

Read More →
man standing in front of podium
F&I•by Lauren Lawrence•October 1, 2026

Consistency at Scale: Driving F&I Performance

With 75 rooftops across the Sunshine State, Morgan Auto Group has proven to Floridians that it knows a thing or two about driving performance in a competitive market. But it didn’t start at the top.

Read More →
Ad Loading...
Insurance contract signature page with black inkpen on top
F&I•by Hannah Mitchell•September 22, 2026

Gitty Up on GAP

The foundational finance-and-insurance product hasn’t kept up with the latest conditions for auto dealers. Is the time ripe?

Read More →
Easycare White paper cover See how AI-powered coaching can turn F&I customer conversations into actionable insights that support compliance, performance and profitability
Sponsored•September 8, 2026

How AI-Powered Coaching Is Transforming F&I Performance

See how AI-powered coaching can turn F&I customer conversations into actionable insights that support compliance, performance and profitability

Read More →
Assurant, Sell Value Build Trust, F&I Series, Expert Trainer Trent White
F&I•September 2, 2026

Sell Value, Build Trust

In this video, Trent White explains why selling on value, not fear, builds lasting customer trust, reduces cancellations, and drives long-term success.

Read More →
Ad Loading...
2026 StoneEagle summary
F&I•by Hannah Mitchell•August 31, 2026

F&I Sales Give Dealers First-Half Lift

Product business shored up total profits to avoid an overall revenue tanking as product penetrations held steady, StoneEagle reported.

Read More →
man with white hair and glasses delivering a speech standing next to a podium
F&I•by Lauren Lawrence•August 31, 2026

Targeted Training Drives Results

Today’s technology, instead of threatening F&I managers, can actually make them better, according to an industry veteran who’s watched market setbacks roil the unprepared.

Read More →
Man's hand holding pen over a paper document
F&I•by Justin B. Gasman•August 20, 2026

Double the Change, Double the Chance

When an F&I manager gets a customer refusal, it’s a wise move to tweak more than one thing in the product offering.

Read More →
Ad Loading...
Laptop computer, tablet, calculator and notebook on a desk
F&I•by John Tabar•August 20, 2026

Just Do It

F&I managers need training, but instead of resisting application or expecting perfection, they should improve by simply acting on what they learn.

Read More →