How Long Can You Finance a Used Car?

Around 80% of car owners in the United States take advantage of an auto loan to purchase a new or used vehicle. Based on a buyer’s credit history and credit score, the amount of the monthly payment can vary. If you want a lower monthly payment, consider a longer term on a used car loan. However, you’ll pay more interest.

You can finance a new or used car purchase from the team at Hadwin-White Subaru when you want a new or new-to-you vehicle in Myrtle Beach. You might want a certified pre-owned Subaru, which gives you a like-new vehicle without paying a new vehicle price. But you need to know how many months you’ll be paying for your used vehicle. We’ve got the answer to, “How long can you finance a used car?” Keep reading to see more details!

How Long Can You Finance a Used Car From Hadwin-White Subaru

Most used car loans range from 60 to 72 months. You should definitely find the loan terms that fit your financial situation the best. Shorter-term loans have higher monthly payments but lower interest, and you’ll pay the vehicle off sooner. Longer-term loans offer higher interest rates but lower monthly payments. But you’ll be straddled with this debt for a longer amount of time. 

This is just a general rule, but it does offer an answer to, “How long can you finance a used car?” next, we’ll get into the maximum amount of time you can get a car loan for.

How Long Can You Finance a Used Car at Maximum?

Every lender is different, and there are no hard-and-fast rules that say an auto loan term has to be a certain length. Some auto lenders won’t give buyers a loan for autos with more than 100,000 miles on the odometer or more than seven years old. But that’s not always the case. We have deep relationships with several lenders, so we’re certain we can find the right loan terms for you in Columbia or Charleston.

How Long Can I Finance a Used Car: Short-Term Pros & Cons

Think about a shorter length for your loan if you can pay a higher amount each month, even if you have an option for a longer loan. Here are the pros of a short-term used auto loan.

Short-Term Loan Pros

• Less Interest: You’ll pay less in interest over the course of a shorter loan term than a longer loan term. More of your monthly payment will go towards the principal of the loan with a short-term used auto loan. 
• Faster Pay-Off: You’ll be free of your auto loan in a shorter period with a higher monthly payment and shorter loan term. You can pay off the loan more quickly. You’ll be rid of the debt to free up your money for other things.
• Easier Refinancing: It’s easier to refinance your car loan if you have a short loan term if you need to. Short-term loans give you less of a chance for negative equity, meaning you will have less of a chance of owing more than what your vehicle is worth.

Short-Term Loan Cons

• Higher Monthly Payment: You’ll make a higher monthly payment each month because the amount of the loan is split into a shorter time. Utilize our monthly payment calculator to see what loan payments you can afford.

How Long Can I Finance a Used Car: Long-Term Pros & Cons

See the benefits and detriments of a longer-term used auto loan:

Long-Term Loan Pros 

• Lower Monthly Payment: With a longer loan term, you spread the car’s price over more months. Therefore, you’ll have smaller monthly payments.

Long-Term Loan Cons

• Higher Interest: Because you’re borrowing money for a longer period of time, you’ll have more interest on the loan.
• Paying on the loan longer: You’ll have to wait to put that monthly payment toward other items because you’ll be paying on the auto loan for more months.
• Vehicle Depreciation: All vehicles lose value over time. A longer-term auto loan means your used vehicle will have less value at the end of your loan. If you plan on selling your vehicle sooner, consider a short-term loan so you can reap the financial benefits sooner.

Learn More About Used Car Financing at Hadwin-White Subaru

We answered, “How long can I finance a used car?” Contact us or call 843-347-4633 if you have more questions about used car financing. Connect with our Conway finance team to learn more from our online resources.