How Long Can You Finance a Used Car?

Do you need a new-to-you pre-owned vehicle and wonder, “How long can you finance a used car?” You’re not alone. If you’re like many other Comanche drivers and are keeping a close eye on your budget, you probably want a smaller monthly payment, which means a longer loan term. So, how many months can you finance a used car? The average auto loan lasts 60 to 72 months, and the loan term keeps growing as car prices escalate. The length of your car loan depends on the amount you can afford to pay each month, and the %%di_name payment calculator can help get an idea of your monthly payment.

Financing a Used Car

Now that you know how long you can finance a used car, you should be aware that there is not a limit on the length of a used car loan, but some lenders around %target_city_1% put an internal restriction on the length of auto loan length. Some lenders limit used car loans to seven years, and some won’t provide loans on cars with over 100,000 miles. Check with the lender you want to use and ask if there are restrictions on financing a used car.

Pros & Cons of Short-Term Auto Loans

Short-Term Auto Loan Pros:

• Refinancing: As long as you can qualify, you can always refinance your car loan if interest rates go down. 
• Faster Pay-Off: Even though your monthly payment is higher, you will repay it faster with a short-term loan. 
• Low-Interest Rate: Generally Stephenville drivers get a lower interest on a shorter-term car loan. 

Short-Term Auto Loan Cons: 

• Higher Monthly Payment: The shorter the loan length, the higher your monthly payment. Be sure a higher monthly payment works for your Eastland budget. 

Pros & Cons of Long-Term Loans

Long-Term Auto Loan Pros: 

• Lower Monthly Payment: When you select a longer-term car loan, you’ll have a lower monthly payment than with a short-term loan. You can always make a higher monthly payment if you want and pay it off faster.

Long-Term Loan Cons: 

• Vehicle Depreciation: Vehicles lose value as they age, but depreciation rates slow down over time. The longer the loan length, the more risk of ending up with negative equity, which is when your car is worth less than the balance you owe on your loan. 
• Higher Interest Rates: Long-term auto loans inherently have more risk, so the interest rate is higher. 

Finance a Pre-Owned Vehicle With Bayer Motor Company Today

Now that we’ve answered the question, “How long can you finance a used car?” You can trust the team at Bayer Motor Company to take all the hassle out of used-car financing with our quick online credit application. We can also give you a value for your trade-in online. Please check out our vast selection of Certified Pre-Owned vehicles and contact us today to go for a test drive!