Can You Finance a Used Car?

Absolutely! You can finance a used car if you’d like to lower the monthly car payment amount. This way, your lower monthly payment will be more manageable. Similar to financing a brand-new vehicle, you can also apply for a loan to finance a pre-owned model. With that said, how long you can finance a used car will vary with different term options. So how many years can you finance a used car? Most used car loan terms range from 5 to 6 years or 60 to 72 months.

The auto loan length isn’t the only factor to consider if you want to finance a pre-owned vehicle near North Ridgeville. Find out more on how to finance a used car below from Spitzer Volkswagen’s finance experts!

Used Car Financing Restrictions

How many years can you finance a used car? While there isn’t an official limit, different lenders may have their restrictions on the auto loans they offer. For example, some may even have policies that don’t allow buyers to finance used vehicles that have more than 100,000 miles on the odometer or that are more than 7 years old. You should be able to find a used car loan length that makes sense for you, especially if you work with professionals like the finance team at Spitzer Volkswagen. 

Short Used Car Loan Term: Pros & Cons

Now that we’ve answered questions like “Can you finance a used car?” and “How long can you finance a used car?” let’s take a look at the pros and cons of a short-term loan for a pre-owned model:

Short-Term Loan Pros

• Less Interest: Interest is added to your monthly payment every month. That said, if you’re paying your loan in fewer months, you’ll pay less in interest over a shorter loan term than a longer loan term.
• Faster Pay-Off: You can enjoy the benefits of ownership sooner—like having no monthly car payment at all—with a shorter loan term.
• Easier Refinancing: It’s easier to refinance your car loan if you have a short loan term since you’ll have spent less time with negative equity.

Short-Term Loan Cons

• Higher Monthly Payment: Because you’re splitting your total cost into fewer monthly payments, you’ll need to cover a higher amount each month. It’s always best to select a loan term length with a monthly payment that’s comfortably within your budget in Elyria. 

Long Used Car Loan Term: Pros & Cons

What if you’d like a long-term loan near Avon? A longer loan term comes with benefits like a lower monthly payment, while possible drawbacks include paying more in overall interest.

Long-Term Loan Pros 

• Lower Monthly Payment: With a longer loan term, you’re spreading the total cost of your vehicle over a longer period. In other words, you’ll pay a smaller monthly amount for the term.

Long-Term Loan Cons

• Higher Interest: The longer the loan term, the more interest accrues by the end. So while you may finance a used car for 6 years with some lenders, you might not want to if you want to avoid paying as much interest as possible. 
• Vehicle Depreciation: Whether new or used, all cars depreciate over time. If you plan to sell your car at the end of your loan term, be aware that it will have lost more value by the end of a longer loan term than a shorter term. To put it differently, you’ll want to consider how long you can finance a used car as well as how much value you want your vehicle to retain by the end of the loan.

Learn More About Used Car Financing at Spitzer Volkswagen

If you’d like to learn more about how to finance a used car or if you have any questions about how to finance a used car in Amherst, our team is always here to help! We’d love to tell you more, including where to find the best used cars in Amherst! Get in touch with us today.