How Long Can You Finance a Used Car?

When you are looking for a pre-owned vehicle in the North Canton area you may be curious, “How long can I finance a used car?” Many Canton drivers want to keep a tight budget, and the best option, in this case, is a longer-term financing plan, as it provides a smaller monthly payment. 

Drivers will find the average auto loan term for a pre-owned vehicle ranges from 60 to 72 months, and loan lengths keep going up as auto prices go up. The length of your loan can be determined by what you can afford to pay each month, and you can utilize our payment calculator to help estimate those costs. Explore the details about financing a used car here with Serra Mazda.

How to Finance a Used Car

How long can you finance a used car? There isn’t one exact answer to this question, but you will find some Akron lenders place restrictions on auto loan length. Some banks limit used car loansto seven years and won’t offer loans on a vehicle with more than 100,000 miles. Be sure to check with the lender you’re considering to ask about restrictions on financing a pre-owned vehicle.

Can You Finance a Used Car: Pros & Cons of Short-Term Loans

Short-Term Auto Loan Pros:

• Faster Pay-Off: A higher monthly payment means that you will repay the loan faster. 
• Low-Interest Expenses: Overall accumulation of interest is lower. 
• Refinancing: If you qualify, you can refinance your auto loan later and get a better interest rate. 

Short-Term Auto Loan Cons: 

• Higher Monthly Payment: The shorter the auto loan term, the higher your monthly payment will be. So ensure that you can afford a higher monthly payment and that it won’t strain your Hudson budget/lifestyle. 

Can You Finance a Used Car: Pros & Cons of Long-Term Loans

Long-Term Auto Loan Pros: 

• More Affordable Monthly Payment: Choosing a longer-term auto loan means you’ll pay less every month than if you had a short-term auto loan. If you find yourself with more money coming in, you can always make a higher monthly payment to repay the loan faster.

Long-Term Loan Cons: 

• Higher Interest Rates: Long-term auto loans provide a higher interest rate, and the longer the car loan, the more interest you’ll pay in total.
• Vehicle Depreciation: Cars depreciate as they age, but depreciation rates slow down as they age. The longer the loan length, the more risk you have of ending up in a negative equity situation, which is when your car’s value is less than the balance you owe. 

How Long Can I Finance a Used Car? Learn More with Serra Mazda

After answering the question, “How long can you finance a used car?” you can rely on Serra Mazda to help you learn more about how to finance a used car. Our team can help you with all of your auto needs. Remember, we take all the hassle out of financing a used car with our online tools that allow you to value your current vehicle, apply for financing and so much more. Stop by our dealership in Akron near North Canton to learn more.