New car prices have climbed so high that some buyers are now stretching payments across a staggering 100-month timeline just to get the keys. The ultra-long loans can make a $50,000 SUV look manageable on paper, but the structure quietly magnifies interest costs and financial risk over nearly a decade. As shoppers chase smaller monthly bills, they are locking into debt that can outlast jobs, family needs and even the life of the vehicle itself.
At first glance, the appeal is obvious: a longer term drops the payment to something that fits this month’s budget. Yet the same math that shrinks the bill also keeps borrowers underwater for years, exposes them to higher rates and leaves little room to maneuver if the economy or their own lives shift. That is why consumer advocates warn that the new era of 100-month car loans is less a solution to high prices than a slow-moving financial trap.
How 100-month loans became the new extreme
What used to be a standard five-year car loan has been stretched so far that 100-month terms are now appearing in dealer finance offices. Earlier generations considered a 60-month car loan long, but lenders and automakers have steadily pushed out to 72, 84 and even 100 m as prices climbed and buyers balked at the monthly hit, a trend highlighted in an Apr explainer on the shift from the old norm. The result is that a purchase that once meant four or five years of payments can now follow a household for most of a decade.
Behind this shift are Skyrocketing vehicle prices that have eroded what counts as an affordable new car. As transaction prices rose, dealers and finance companies leaned on longer terms to keep monthly payments palatable, turning what had been a 48 to 60-month commitment into something closer to a decade. Industry voices now describe the old 48 and 60-month benchmarks as a thing of the past, with Industry data showing how quickly shorter loans have been displaced by extended terms.
The hidden costs and risks of stretching payments
Longer loans do what they promise: they lower the monthly payment, but that relief comes at a steep price in total interest. A detailed breakdown of 100-month financing shows how borrowers trade short-term comfort for thousands of extra dollars over the life of the loan, as highlighted in a Jan analysis of the hidden costs. In one example, the difference between a conventional term and a 100-month option is not just a few dollars a month, it is years of additional payments that keep the borrower tied to a depreciating asset.
The danger is not limited to the most extreme terms. An 84-month loan term can end up costing $5,326 more in interest than a 48-month option on the same vehicle, according to a $5,326 comparison that underscores how quickly costs balloon as time stretches. Consumer finance experts list multiple Reasons to avoid long-term car loans, starting with the basic math that more months mean more time for interest to accrue. Upfront, a long-term deal may feel like a win, but over eight or nine years it can quietly drain thousands that could have gone to savings, retirement or higher priority debts.
There is also the problem of being upside down, owing more than the car is worth, for far longer. With a 36-month loan, borrowers build equity relatively quickly, but stretching to 84 or 96-month terms keeps them on what one adviser described as a tough treadmill to get off, a warning captured in an Oct breakdown of how term length affects trade-in options. Lenders themselves consider longer-term loans riskier, and data show that average negative equity on trade-ins has hit a record $6,905 for borrowers who roll old debt into new deals, according to Lenders tracking of these balances.
Why experts say to think twice before signing
Financial counselors are increasingly blunt: You really want to avoid the 84 or 96-month loans, though, because they lock in high interest costs and keep households exposed to repair bills on aging cars while payments continue. That warning, captured in a Why discussion of lengthy terms, applies even more sharply to 100-month contracts that can outlast job changes, moves and family shifts. In one detailed scenario, analysts show how a buyer who chooses a decade-style term can pay far more in interest than the car is worth by the time the final installment is due, a pattern illustrated in a Your example of how long payoff timelines magnify costs.
Some industry observers describe 100-month loans as Another way to increase your debt rather than a genuine affordability fix. One Another commentary on decade-long auto debt argues that Skyrocketing prices are goading consumers into multi-year obligations that leave little room for emergencies or other goals. That same concern appears in a Longer look at how buyers focus on the monthly number instead of the total cost, a mindset that can obscure just how much they are giving up over time.
Experts suggest several alternatives for shoppers tempted by 100-month offers. One is to delay a purchase until credit conditions improve or prices cool, a possibility raised in an Experian outlook that notes lenders may tighten standards as the broader economy loses momentum. Another is to downshift expectations and look at smart choices available at a reasonable cost, including used models and lower trims, a strategy echoed in Final Thoughts Affordable guidance on finding value without overextending. For buyers who must finance now, consumer advocates recommend keeping terms as short as the budget can handle, even if that means choosing a less expensive car, because the real measure of affordability is not just today’s payment but the total cost and flexibility preserved over the years.
More from Wilder Media Group: