How Long Can You Finance a Used Car?

Tiny car with coins and finance paperwork

Are you a Owosso driver asking, “How long can I finance a used car?” You wouldn’t be the only one! Believe it or not, many Owosso drivers have been wondering, “How long can you finance a used car?” as they go about searching for their next new-to-you vehicle. 

So how long can you finance a used car? The average auto loan term for a pre-owned vehicle is 60 to 72 months, and the loan length keeps going up as auto prices go up. The length of your auto loan depends on what you can afford to pay each month. Feel free to contact our finance center team at Slingerland Chrysler Dodge Jeep Ram FIAT for more information.

Financing a Used Car

How long can I finance a used car? There’s no firm limit on the length of a used car loan, but it’s important to note that some banks limit used car loans to seven years and won’t offer loans on a vehicle with more than 100,000 miles. So be sure to check with the lender you’re considering to ask about restrictions so you can be as informed as possible when making your purchase decision.

Pros & Cons of Short-Term Loans

Short-Term Auto Loan Pros:

  • Faster Pay-Off: Because your monthly payment is higher, you will repay the loan faster. 
  • Low-Interest Expenses: You’ll likely get a lower interest on a shorter-term car loan. 
  • Refinancing: If you qualify, you can always refinance your auto loan later if interest rates drop. 

Short-Term Auto Loan Cons: 

  • Higher Monthly Payment: The shorter the auto loan term, the higher your monthly payment will be. Be sure you can afford a higher monthly payment and that it won’t strain your Flushing budget. 

Pros & Cons of Long-Term Loans

Long-Term Auto Loan Pros: 

  • More Affordable Monthly Payment: When you opt for a longer-term auto loan, you’ll pay less every month than if you had a short-term loan. You can always make a higher monthly payment to repay it faster.

Long-Term Loan Cons: 

  • Higher Interest Rates: Long-term auto loans offer higher interest rates, and the longer the car loan, the more interest you’ll pay overall.
  • Vehicle Depreciation: Cars depreciate as they age, but depreciation rates slow down as they age. The longer the loan length, the more risk you have of ending up in a negative equity situation, which is when your car’s value is less than the balance you owe. 

Finance a Used Car in CorunnaToday

Now that you understand the answer to the common question, “How long can I finance a used car?” all you need to do now is explore our used vehicle inventory to find your next ride! Then take a look at our car-buying tips and apply for financing so you can get back out onto the St. Johns road as soon as possible.

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