How Long Can You Finance a Used Car?

Finance Agreement
 

Buying a pre-owned vehicle over a new vehicle is a great way to get a reliable commuter for your Minneapolis drives at a lower price. But, when shopping for a used vehicle, you’ve probably wondered to yourself, “How long can I finance a used car?” This will vary depending on how much you’re comfortable with paying each month, but the average loan term for pre-owned vehicles is around 60-72 months. Take a look at how long you can realistically expect to finance a used vehicle with the finance team at Jaguar Richfield. We’re here for all of your used-car-buying needs. 

 

 

Longest Amount of Time to Repay an Auto Loan

So, how long can you finance a used car? There’s no exact limit on the amount of time that you can finance a pre-owned vehicle, but if you go through a bank, then there are some guidelines you’ll more than likely have to follow. Some banks have a policy that prevents you from financing pre-owned vehicles that are more than 7 years old and have more than 100,000 miles on the odometer. You’ll have to contact your lending institution for the specific loan terms and protocols to get a better idea of how long you can finance a used vehicle. Apply for financing online at Jaguar Richfield to get a head start on financing a pre-owned vehicle that you’ll love to drive around St. Paul. 

Long-Term Loans vs. Short-Term Loans

When asking yourself, “How long can I finance a used car?”, you’ll want to consider choosing between a long-term loan and a short-term loan. The best option will be the one that works for your current circumstances, and both options have their own sets of advantages and disadvantages. To see which option is the best choice for you, take a look at the pros and cons of long-term and short-term loans below: 

Short-Term Loan Advantages:

  • A shorter loan term means that you’ll pay less in interest over time. 
  • You’ll be able to pay off your loan at a faster rate. 
  • It’s easier to refinance a short-term loan later on down the road. 

Short-Term Loan Disadvantages: 

  • Shorter loan terms will have higher monthly payments 

Long-Term Loan Advantages: 

  • Long-term loans have lower monthly payments than short-term. 

Long-Term Loan Disadvantages: 

  • With long-term loans, you’ll pay more interest over time.
  • As your vehicle depreciates over time, your equity will become lower. The longer the length of the auto loan, the more your car will have negative equity, which is when the vehicle’s estimated value is less than what you owe on the loan.

So, how long can you finance a used car? Visit our finance center at Jaguar Richfield to go over your options, and feel free to check out our other car-buying tips and advice

Finance a Used Car in Richfield

Contact us for any other questions about how long you can finance a used car. Our team will work with you directly, so you can feel confident when buying a used vehicle. We’ll go over what credit score is needed for a used car and any other questions you might have. 

 

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