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How Long Can You Finance a Used Car?

Buying a used car from Salt Lake Valley Buick GMC is a great way to save money when it’s time to upgrade your South Salt Lake ride. But do you know how to finance a used car? How long can you finance a used car? The average auto loan term for a pre-owned vehicle is 60 to 72 months. Most shoppers have some say in how long their loan term lasts, and how many years they can finance a used car. The amount of time you choose is likely to depend on your financial situation. If you need lower monthly payments, a longer loan term might be right for you. But if you want overall savings with less money spent on interest, go for that shorter term. Want to know more? The finance department at Salt Lake Valley Buick GMC can help!
Car-Buying Tips Used Vehicles
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How to Finance a Used Car

Part of knowing how to finance a used car is deciding how long you can finance a used car, as there’s generally no limit to the amount of time you can set for your loan term. That said, lenders can set restrictions on loan terms. It’s common for lenders to limit financing on used cars to under seven years. Some won’t give loans for vehicles with over 100,000 miles. When you apply for financing, make sure you check the terms and restrictions when you’re making your choice.
    Pros & Cons of Short-Term Loans

    Short-Term Auto Loan Pros:
    • Faster Pay-Off: Because your monthly payment is higher, 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 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. Be sure you can afford a higher monthly payment and that it won’t strain your budget.

    Pros & Cons of Long-Term Loans

    Long-Term Auto Loan Pros:
    • More Affordable Monthly Payment: You'll pay less every month than if you had 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, and the longer the car loan, the more interest you’ll pay overall.
    • 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.

    Finance a Used Car With Salt Lake Valley Buick GMC
    When you’ve decided how long you can finance a used car, find your next vehicle with Salt Lake Valley Buick GMC! And if you want to learn more about the buying and financing process, pay a visit to our car-buying tips. Our team is always working to make it easier for you to get the car you need at a price you’ll love!