How Long Can You Finance a Used Car?

If you’re used car shopping around Lake Havasu City and wondering, “How long can I finance a used car?” the team at Anderson Auto Group can help. Many Lake Havasu City drivers are watching their budget closely, and the longer your finance period, the smaller your monthly is. The average auto loan term for a used car is 60 to 72 months, and the loan length is going up along with auto prices. The length of your car loan depends on how much you can afford to pay monthly, and our payment calculator can help you estimate what you can afford to pay. Learn more about used car financing here with the finance team at Anderson Auto Group.

Financing a Used Car

If you’re still curious about “How long can I finance a used car?” Keep reading. There’s no exact limit on the length of a used auto loan around Bullhead City, but some auto lenders restrict loan length. Some banks limit used car loans to no more than seven years and don’t offer loans on cars with over 100,000 miles. Check with various lenders and ask about restrictions on financing a used car.

Pros & Cons of Short-Term Auto Loans

Short-Term Auto Loan Pros:

• Low-Interest Expenses: You’ll get a lower interest on a shorter-term auto loan.
• Refinancing: If you qualify, you can always refinance your car loan in the future if interest rates go down.
• Faster Pay-Off: Your higher monthly payment means you will repay your loan faster.

Short-Term Auto Loan Cons:

• Higher Monthly Payment: The shorter the car loan length, the higher your monthly payment. Make sure you can afford a higher monthly payment and that it won’t bust your Kingman budget. A good rule of thumb is that your car payment shouldn’t exceed 10% of your monthly income.

Pros & Cons of Long-Term Loans

Long-Term Auto Loan Pros:

• More Affordable Monthly Payment: If you have a longer-term auto loan, you’ll pay less each month than on a short-term loan. You can always make a higher monthly payment and pay it off faster.

Long-Term Loan Cons:

• Higher Interest Rates: Long-term car loans have higher interest rates, so the longer the auto loan, the more interest you’ll pay in the long term.
• Vehicle Depreciation: Cars depreciate as they age, except for some classic cars. But depreciation rates slow down as cars age. The longer the loan, the more risk of ending up with negative equity. Negative equity is when your car’s value is less than the remaining balance of your loan.

Finance a Used Car Today With Anderson Auto Group

Now that you know the answer to the question, “How long can you finance a used car?” turn to Anderson Auto Group for all your automotive needs. From several car financing and leasing options to our no-hassle online credit application, we’re here to help! Please browse our selection of Certified Pre-Owned vehicles and contact us to go for a test drive around Lake Havasu City!