How Long Can You Finance a Used Car?

If you’re considering a used or certified pre-owned model, you might be asking, “How long can I finance a used car?” As a Cleveland buyer, you’re keeping a close eye on your expenses, and the longer you finance a vehicle, the smaller your payment will be.

So, how long can you finance a used car? The average auto loan term for a pre-owned model is 60-72 months, and your loan length keeps going up as auto prices go up. Your auto loan length depends on what you’ll be able to pay monthly, and our payment calculator can help you estimate that. Learn more below on used car financing with North Coast Mitsubishi Bedford!

Financing a Used Car

So, how long can I finance a used car? There’s no actual limit on a used car loan, yet some Northfield lenders may restrict your auto loan length. 

For instance, banks might restrict used car loans to seven years and won’t provide vehicle loans on a model with more than 100,000 miles. Always review the lender you’re working with to determine if they have restrictions on financing a pre-owned option.

Pros & Cons of Short-Term Loans

As we delve further into “How long can you finance a used car?” let’s explore what each available type of loan around Warrensville Heights can provide.

Short-Term Auto Loan Pros:

• Faster Pay-Off: Since your monthly payment will be higher, you’ll repay the loan faster.
• Low-Interest Expenses: You’ll get a lower interest rate on shorter-term car loans.
• Refinancing: For those who qualify, you can always 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. Make sure you can afford a higher monthly payment and don’t strain your Cleveland budget.

Pros & Cons of Long-Term Loans

Long-Term Auto Loan Pros: 

• More Affordable Monthly Payment: For those considering a longer-term auto loan, you’ll pay less each 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 will offer higher interest rates, and the longer your car loan, the more overall interest you’ll pay.
• Vehicle Depreciation: All vehicles will depreciate as they age, but depreciation rates slow down as your car gets older. The lengthier your loan, the more risk you have of being in a “negative equity” situation. This is where your car’s value is less than the balance you owe.

Finance a Used Car With North Coast Mitsubishi Bedford Today

Now that you have an answer to “How long can I finance a used car?” experience the quality pre-owned selections at North Coast Mitsubishi Bedford. We take all the fuss and complications out of finding a reliable used model that can handle your Northfield drives with ease.

You can also use our value your trade tool to get a sense of what your current model might be worth as a trade-in. Our pre-owned vehicle specials also allow you to save on your ideal option! Experience the great selections and support at North Coast Mitsubishi Bedford in Bedford today!