Veteran F&I managers might remember a time when stretching terms beyond 36 months to complete the financing for a used-vehicle installment contract seemed outlandish. Now getting deals bought and used models delivered with terms double that term length is more commonplace.

In its Q3 Used Vehicle Market Report, Edmunds.com provided further evidence to the degree longer terms are prevalent.

“Higher vehicle values have caused a dramatic shift in the way that consumers finance,” analysts said. “In order to keep monthly payments at manageable levels the trend toward loans over five years is now the norm.

“Comparatively, five years ago these loans only represented 40 percent of the business but in today’s market they are the majority at 65 percent,” they continued.

The report contain comparisons between payment and term metrics Edmunds pinpointed for this year to show the expansion from 2010. Here is the breakdown:

“Lower interest rates and increased terms has made monthly payments at nearly all term lengths lower than 2010 levels,” analysts said. “However, we are seeing an increase in monthly payment for those loans with the longest terms.

“The higher concentration of longer terms loans has brought up the monthly payment average to $375 from $360 in 2010,” they added.