How Long Can You Finance a Used Car?

If you’re shopping around Bartow for a pre-owned vehicle, you’re probably asking yourself, “How long can I finance a used car?” This is an essential question, especially for any driver on a tight budget. The average auto loan term on a pre-owned vehicle is 60 to 72 months. Most choose their loan term based on how much they can afford in monthly payments, which you can estimate at home using our car payment calculator. Learn more about financing a used car below, and feel free to contact our finance department if you have any additional questions.

Financing a Used Car

So, how long can you finance a used car? While there isn’t a firm limit on the length of a used car loan, there are some Winter Haven lenders that place restrictions on it. Some banks limit used car loans to seven years and won’t offer them if the vehicle has more than 100,000 miles. It’s best to check with your lender if you’re interested in financing a used car.

Pros & Cons of Short-Term Loans

Short-Term Auto Loan Pros:

• Faster Pay-Off: With a higher monthly payment, 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. Make sure your car payments won’t put a strain on your budget.

Pros & Cons of Long-Term Loans

Long-Term Auto Loan Pros: 

• More Affordable Monthly Payment: If you choose a longer-term auto loan, you will pay less every month than with 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, which means you can pay more interest overall.
• Vehicle Depreciation: Cars depreciate as they age, but depreciation rates slow down as they age. With a longer loan length, you risk ending up in a negative equity situation, which means your car’s value is less than the balance you owe. 

Finance a Used Car With Kelley Automotive Group of Lakeland 

Now that you know more about how long you can finance a used car in Auburndale, our finance experts are standing by if you have any questions. You can also explore our virtual showroom to find the pre-owned vehicle that checks off all your boxes. Be sure to explore our pre-owned specials for additional savings. Contact us to get things started today!