How Long Can You Finance a Used Car?

If you’re in the market for a used vehicle, you might be wondering, “How long can I finance a used car?” On average, financing a used car means you’ll have an auto loan term that’ll last between 60 and 72 months. At the same time, your loan length will also go up if auto prices are also increasing. At Suburban Chevrolet, we’ve been asked about financing a used car so often, we decided to answer this question fully. And here we are! How long your auto loan lasts depends on what you can afford every month. Meanwhile, our payment calculator can help estimate your monthly payments. Learn more about how long can you finance a used car below.

Financing a Used Car Near Bloomington

So, how long can I finance a used car? To be honest, there is no limit to how long a used car loan lasts. In the case of some Minnetonka lenders, they may place their own restrictions on an auto loan length. Banks can limit used car loans to 7 years and won’t offer any on vehicles with more than 100,000 miles. Always remember to check with your lender if you’re curious about financial restrictions for pre-owned vehicles.

Pros & Cons of Short-Term Loans

Short-Term Auto Loan Pros:

• Faster Payoff: Since your monthly payment is higher, you will repay the loan faster.
• Low Interest Expenses: You can get a lower interest rate on a shorter-term car loan.
• Refinancing: If you’re able to qualify, you can refinance your auto loan if your interest rates drop.

Short-Term Auto Loan Cons: 

• Higher Monthly Payment: The shorter your auto loan term, the higher your monthly payment will be. At the same time, you should be sure you can afford a higher monthly payment that won’t strain your budget.

Pros & Cons of Long-Term Loans

Long-Term Auto Loan Pros: 

• More Affordable Monthly Payment: For those opting for a longer-term auto loan, you’ll be able to pay less every month than if you had a short-term loan. You can also make higher monthly payments to pay it down faster.

Long-Term Loan Cons: 

• Higher Interest Rates: Long-term auto loans will have higher interest rates attached. The longer the car loan lasts, the more interest you’ll pay overall.
• Vehicle Depreciation: All vehicles will depreciate as they age. The longer the loan lasts, the more chance you have of being in a “negative equity” situation. When this occurs, your car’s value is less than the balance that’s owed. 

Finance a Used Car in Eden Prairie with Suburban Chevrolet Today!

Now that you have an answer to how long can you finance a used car, it’s time to check out the selection at Suburban Chevrolet. You can handle all your financing without too much difficulty. Fill out our online application and get the process started as soon as possible. We can also help answer other car-buying questions and concerns, including how to raise your credit score and what to look for in used cars. Get your next pre-owned vehicle at Suburban Chevrolet near Hopkins.