According to J.D. Power, 72 month loans are now the most popular loan term for new vechiles.

The domestic automakers’ aggressive financing incentives earlier this year, including 0% APR on 72-month loans, are one reason why 72-month loans are now the most popular in the new-vehicle retail financing business, outdistancing 60-month loans, which had been the most common during the past two years. So far in 2006, more than four of every 10 new-vehicle loans have been financed for six years, up from three in 10 two years ago. In contrast, five-year loans have slipped from half the business to less than 40% today.

Financing in the used-vehicle industry is following a similar trend, though five-year loans remain the most popular in this market.

Vehicles Sales Year Term New-Car

. . . . . . . .. . . . . . .. . . . .  . . . 48 mo . . . . . . 60mo . .  .  . .72mo.
Total Industry 2004 . . . . . . . 5.5% . . . . . . 49.7% . . . . . 30.6%
Total Industry 2005 . . . . . . . 5.3% . . . . . . 45.0% . . . . . 33.1%
Total Industry 2006 . . . . . . . 4.8% . . . . . . 38.6% . . . . . 40.6%
Used-Car
Term Distribution
Total Industry 2004 . . . . . . . 10.1% . . . . . 50.5% . . . . . 19.8%
Total Industry 2005 . . . . . . . 9.2% . . . . . . 46.2% . . . . . 26.1%
Total Industry 2006 . . . . . . . 8.4% . . . . . . 40.7% . . . . . 33.6%
Source: Power Information Network (PIN)
Note: Data covers transactions that occurred from January through September for each year