How Long Can You Finance a Used Car?

If you’re in the market for a gently used car in Troy, you may be wondering how long you can finance a used car. The average loan term for a used car is between 60 to 72 months and is determined by the price of the vehicle, your down payment amount, your credit score, and the monthly payment amount that works with your budget. Before picking out your new ride, you can use our helpful payment calculator to get an idea of your financing terms, then let us know if you have any questions.

Financing a Used Car

New or used, when it comes down to financing a car, the loan stipulations are set by the lender or bank. Meaning, the term of your loan is decided based on how long the lender believes you can successfully pay back the loan. On average, banks will not finance a vehicle older than 10 years with over 100,000 miles because oftentimes the value of older model cars is not enough to sustain the amount of the loan. But when Troy drivers choose to work with the finance team at Dave Arbogast, they don’t have to worry because our finance experts know which used cars will fit perfectly with their financial situation. We will never put you in a deal where you’re stuck paying for a used car for more than six years. You can speak with a member of our finance center for more information.

Pros & Cons of Short-Term Loans

Short-Term Loan Pros:

• Low-Interest Expenses: In the long run, you’ll pay less interest on a shorter-term auto loan.
• Faster Pay-Off: Your higher monthly payment will help you repay the loan faster.
• Refinancing: If you desire (and qualify), you can always refinance your loan later.

Short-Term Loan Cons:

• Higher Monthly Payment: The shorter the loan term, the higher the monthly payment. Make sure a higher monthly payment works with your Vandalia budget and won’t strain your finances.

Pros & Cons of Long-Term Loans

Long-Term Loan Pros:

• More Affordable Monthly Payment: When you choose to go with a longer-term auto loan, you’ll get to pay less every month than you would with a short-term loan. Plus, you can always pay higher payments to repay your loan faster.

Long-Term Loan Cons:

• Higher Interest: Long-term auto loans have higher interest rates, and the longer the loan term, the more interest you’ll pay in the long run.
• Vehicle Depreciation: Cars depreciate over time, but depreciation rates slow down on most cars as they age. So, the longer the loan length, the more risk you have of getting into a negative equity situation, which is when a car’s value is less than the balance remaining.

Finance Your Next Used Car at Dave Arbogast!

Now that we’ve cleared up the confusion surrounding how many years you can finance a used car, let us take the hassle out of the financing process with our easy online credit application. Also, if you have a vehicle you’d like to trade in, use our value your trade-in tool for an accurate offer on your car. We invite you to browse our impressive selection of pre-owned vehicles and then stop by for a test drive!