Add Row 
Add 
84-Month Loan Terms: A Growing Reality in Auto Financing
In a recent statement at the Auto Finance Summit East 2025, the president of NMAC (Nissan Motor Acceptance Corporation) declared that 84-month loan terms are becoming an 'inevitable' aspect of the automotive finance landscape. This revelation reflects a significant shift in consumer behavior, where longer loan periods are increasingly seen as necessary to accommodate rising vehicle prices and economic pressures on buyers.
Understanding the Shift: The Economics Behind 84-Month Loans
As vehicle prices continue to climb, many consumers are finding that traditional loan terms simply don’t fit their budgets. The trend towards 84-month loans provides buyers with a more manageable monthly payment, making it easier to afford higher-priced cars. However, longer terms can also mean higher overall interest costs and a greater risk of becoming 'upside down' on loans—owing more than the car is worth.
Consumer Awareness: Navigating the New Normal
Dealership principals and General Managers (GMs) need to educate their customers about the trade-offs associated with extended loan terms. While the allure of a lower payment is strong, the long-term implications on vehicle value and financial health should be clearly communicated. Notably, a survey highlighted that many consumers are unaware of the nuances of extended financing periods, which can impact their choices in the long run.
Future Implications: What This Means for Dealerships
As 84-month loans become more common, dealerships may need to adjust their sales strategies to accommodate these evolving financing structures. Fostering transparency will be crucial in building trust with customers. Furthermore, embracing innovative automotive training programs can help dealership staff better equip themselves to handle these complex financing discussions and provide exceptional customer service.
Expert Opinions: Insights from the Industry
Industry experts agree that while longer loan terms provide immediate relief for buyers, they could also open the door to financial distress down the line. Stakeholders in the automotive sector should monitor this trend closely, as it not only influences dealership revenues but also customer satisfaction and loyalty. One expert aptly stated, "The key lies in balancing the need for accessible financing with the education of buyers on the realities of debt."">
Write A Comment