XDCX
01-06-2008, 09:08 PM
I was surprised to read that Toyota Financial Services is now offering 84 Month Loans in an effort to compete with the Banks and Credit Unions.
It doesn't appear that Toyota is alone. According to the Power Information Network, the most common loan term for new vehicle buyers is now 72 - 78 months. (That span represents almost 40% of all loan terms.)
Ironically, the Banks and Credit Unions indicate that they first offered the longer terms in an effort to compete with the OEM's when they were offering 0% terms in response to the lull brought on by the 9/11 Terrorist Attacks.
Who knows where it will end, but I can't imagine that the terms are going to stretch much further - especially in this credit market. On the plus side, it should make GAP coverage much more appealing to your customers when they're working with your F&I Department.
It doesn't appear that Toyota is alone. According to the Power Information Network, the most common loan term for new vehicle buyers is now 72 - 78 months. (That span represents almost 40% of all loan terms.)
Ironically, the Banks and Credit Unions indicate that they first offered the longer terms in an effort to compete with the OEM's when they were offering 0% terms in response to the lull brought on by the 9/11 Terrorist Attacks.
Who knows where it will end, but I can't imagine that the terms are going to stretch much further - especially in this credit market. On the plus side, it should make GAP coverage much more appealing to your customers when they're working with your F&I Department.