How Long Can You Finance a Used Car?

If you’re shopping for a pre-owned vehicle in the Glendale area, such as a used Chevy, you might be wondering, “How long can I finance a used car?” Well the short answer is, an average of 60 to 72 months. But there are some restrictions that you need to know when it comes time to how long you can finance a used car for, depending on how much you can afford to pay on a monthly basis. Learn more about the financial options with the finance department of Bell Road Mitsubishi below. If you have any questions about term lengths and loans, then contact us today and we’ll make sure to answer all of your questions.

Maximum Amount of Time to Repay a Car Loan

While there is no set limit on the maximum amount of time to repay a car loan, there are a few guidelines that banks follow. For example, some banks around Peoria and Mesa have a policy on used cars that prevents buyers from financing vehicles over seven years old and with over 100,000 miles on their odometers. It’s best to contact your preferred lender and ask about their restrictions on used car financing before taking the next step.

What Are the Pros & Cons of Short-Term Loans?

Short-Term Loan Pros:

• Low-Interest Expenses: A shorter loan term will come with a higher monthly payment, but you’ll pay less interest over time.
• Faster Pay-Off: The higher monthly payment will allow you to pay off the loan faster.
• Refinancing: If your credit score is strong, you may have the opportunity to refinance your loan later down the road. Generally, it’s easier to do this with a short-term loan, because your loan will spend less time being upside down.

Short-Term Loan Cons:

• Higher Monthly Payment: The higher monthly payment of a short-term auto loan could have a negative impact on your budget. Make sure that you are financially able to meet your monthly payment obligations.

What Are the Pros & Cons of Long-Term Loans?

Long-Term Loan Pros:

• More Affordable Monthly Payment: A longer loan term allows you to pay less every month, so you’ll have some leeway if your financial situation changes at any point.

Long-Term Loan Cons:

• Higher Interest: Long-term loans come with higher interest rates. The longer the loan term, the more interest accrues.
• Vehicle Depreciation: Cars depreciate over time, although depreciation rates slow down as a car gets older. That being said, the longer the length of the auto loan, the more time your car will spend as “negative equity.” This is when the car’s cash value is less than the balance of the loan.

Find Your New-To-You Model Today at Bell Road Mitsubishi

Now that you know more about how long can you finance a used car for, then the next step is applying for financing online. Our finance department knows how to take care of the car buying process, so you don’t have to worry about the paperwork or making sure that you’re getting the best deal around Mesa as we’ll make sure your low mileage used car is at an incredible price.