How Long Can You Finance a Used Car?

How long can I finance a used car? It’s a question that we often get asked when Henrico drivers are trying to decide on changing cars. Generally, the average auto loan term is up to 60 to 72 months and can increase as car prices increase. There are loose restrictions depending on how long you plan to finance a car, and your car loan length will depend on how much you can pay on a monthly basis. If you’re ready to learn more about the different ways in which financing a used car can be right for you, as well as how long can you finance a used car, then continue reading below. Our finance department is here to help make the car buying process easy.

Maximum Amount of Time to Repay a Car Loan

There is no set limit when it comes to repaying a car loan. However, some banks 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. Still, that depends on which bank you are getting financing from. Be sure to visit us at Rick Hendrick Chevrolet Buick GMC Richmond if you have questions on car loan restrictions for Glen Allen residents. 

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

Short-Term Loan Pros:

• Low-Interest Expenses: You’ll pay less interest over time due to the idea that you’ll have higher monthly payments and shorter loan terms. 
• Faster Pay-Off: Again, the higher the monthly payment you have, the quicker you can pay off the loan.
• Refinancing: If you choose, you can refinance your loan later down the road (assuming your credit score is strong). Generally, it’s easier to do this with a short-term loan because your car will spend less time being upside down. 

Short-Term Loan Cons: 

• Higher Monthly Payment: Short-term auto loans come with a higher monthly payment than long-term auto loans. Make sure a higher monthly payment suits your budget, as it could potentially impact your financial freedom. 

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

Long-Term Loan Pros: 

• More Affordable Monthly Payment: When you choose a longer loan term, you will pay less over a longer period of time. If your financial situation changes, you will have some leeway.

Long-Term Loan Cons: 

• Higher Interest: Long-term loans come with higher interest rates; interest grows the longer the loan term. 
• Vehicle Depreciation: Cars depreciate over time, although depreciation rates do slow down as a car gets older. 

Finance Your Next Used Car at Rick Hendrick Chevrolet Buick GMC Richmond! 

Is financing a used car the right step for you? Then it’s time for you to take a look at what Rick Hendrick Chevrolet Buick GMC Richmond can do for you and your commutes to Goochland! Get the process started by applying for financing online, then use our trade-in value tool to figure out the estimated value of your vehicle.