How Long Can You Finance a Used Car?

Auto financing can be confusing to many drivers in Barberton, and we often get questions like “Can you finance a used car long term?” or “How long can I finance a used car?” On average, most loans last about 60 to 72 months. But due to car price increases, the average loan term has been slowly increasing as well. While there are some restrictions on how long can you finance a used car, there’s a lot of flexibility as well. Get to know the basics of auto loan financing with Serra Chevrolet Akron, and find out more about car shopping tips from our experts.

Maximum Amount of Time to Repay a Car Loan

So, can you finance a used car? Yes. How long can you finance a used car? There is no maximum amount of time to repay a car loan, but most banks follow certain guidelines. For example, many banks won’t allow buyers to finance vehicles older than seven years with over 100,000 miles on the odometer. However, different lenders have different requirements. It’s always a good idea to communicate with any lender you’re considering in Massillon and North Canton to ask, “How long can I finance a used car?”

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

Short-Term Loan Pros:

• Low-Interest Expenses: A shorter loan term means you’ll pay off the loan quicker, which means less interest paid overall.
• Faster Pay-Off: Paying off your loan faster means you’ll free up your funds quicker, so you can move on to other financial goals. 
• Refinancing: Refinancing can be easier and faster with a short-term loan because you’ll spend less time being upside. If your credit score is strong, this is a great option.

Short-Term Loan Cons: 

• Higher Monthly Payment: When you choose a shorter-term loan, you’ll pay more per month than a longer loan. Make sure you have financial flexibility. 

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

Long-Term Loan Pros: 

• More Affordable Monthly Payment: The longer the loan, the lower your monthly payments on average. This can make costs more manageable. 

Long-Term Loan Cons: 

• Higher Interest: You’ll pay interest with every month of payments, so the longer the term length, the higher the total amount of interest paid. 
• Vehicle Depreciation: When you have a very long loan, your car will depreciate and potentially leave you in “negative equity.” This occurs when the car’s cash value is less than the balance of the loan. 

Finance Your Next Used Car at Serra Chevrolet Akron! 

Can you finance a used car at Serra Chevrolet Akron? Absolutely, and we can give you a more in-depth answer to the question, “How long can I finance a used car?” based on your own unique finances. Contact us with your questions today, and stop by Akron to start shopping. You can take the first steps by applying for financing and checking out our payment calculator!