How Long Can You Finance a Used Car?

If you’re in the market for a used car around Elgin, you may have wondered, “How long can you finance a used car?” A used car’s average auto loan term is 60 to 72 months. There are few restrictions on how long you can finance a used car. The length of your loan term will mostly depend on how much you can afford to pay each month, and our payment calculator can help you figure that out. Below, you can learn more about used car loan lengths so you’ll never have to ask again, “How long can I finance a used car?” Contact our finance specialists at Biggers Mazda if you have more questions.

Maximum Amount of Time to Repay a Car Loan

There are a few guidelines for banks to follow regarding used car loan lengths. Some banks have an internal policy about used cars that prevent buyers from financing vehicles over seven years old or more than 100,000 miles. You can always check with your preferred lender in South Elgin to ask about their used car financing restrictions before proceeding.

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

Short-Term Loan Pros:

• Low-Interest Expenses: With a shorter loan length, you’ll have a lower interest rate and pay less interest overall.
• Faster Pay-Off: With a higher monthly payment and a lower interest rate, you can pay off the loan faster.
• Refinancing: You can always refinance your loan later down the road if need be, and it is easier with a short-term loan.

Short-Term Loan Cons:

• Higher Monthly Payment: Short-term car loans have a higher monthly payment than long-term auto loans, so make sure a higher monthly payment fits your Schaumburg budget.

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

Long-Term Loan Pros:

• More Affordable Monthly Payment: With a longer loan term, you get to enjoy paying less each month, and if your financial situation changes, you have some leeway.

Long-Term Loan Cons:

• Higher Interest: Long-term loans offer higher interest rates to Palatine drivers, so the longer the loan term, the more interest you’ll pay.
• Vehicle Depreciation: The longer the car loan, the more you risk getting into a negative equity situation. Negative equity is sometimes called “being upside down in your car,” when the vehicle’s value is less than the loan balance.

Finance Your Next Used Car With Biggers Mazda Today!

Now that we’ve answered the question, “How long can you finance a used car,” please let us know if you need assistance with auto financing. We encourage you to browse our impressive selection of pre-owned vehicles or new Mazdas for sale at Biggers Mazda, such as the 2023 Mazda CX-5! Start the process by applying for financing online, and contact us today!