There are many benefits to buying a used car, but you might be wondering how many years can you finance a used car for? If you’re searching for a used car near Evergreen, it’s important that you know the answer to the question “How long can I finance a used car?” Typically, the average loan term for a used car lasts between 60 and 72 months. This number also depends on what you can afford to pay on a monthly basis which influences how many years can you finance a used car.
Read on below with the Lee Motor Company finance team to learn more about how long it takes to repay a car loan as well as the pros and cons of long and short term loans. Then contact us today with any questions that you still have.
There are no set limitations on the amount of time it takes to pay back a car loan. If you’re considering receiving auto financing from a bank, some banks in Brewton and elsewhere may refuse to offer you financing depending on how old a vehicle is. For example, it can be more difficult to receive financing for vehicles that are more than seven years old and have more than 100,000 miles on their odometers. Contact your lender of choice about used car financing.
The primary perk of going with a short-term loan is that your commitment to your monthly payment is much shorter, meaning you’ll pay less interest over time since your monthly payments will be higher. Having higher monthly payments also means you will be able to pay off your loan faster. There’s always the option to refinance your loan down the road, which is easier to do if you have a short term loan.
The primary disadvantage of taking out a short term loan is that, of course, you’ll be paying more month-to-month. Before you go with a short term loan, you want to make sure you’ll be able to afford it so that you can make all your payments on time. Nobody wants to take a hit to their credit score.
When you choose to take out a long-term loan, you’ll be paying less month to month since the total car payment is spread out over a longer period of time. This is a good option if you’re looking to make lower monthly payments. However, keep in mind how many years can you finance a used car, as this can influence your monthly payments.
However, the main drawbacks of long-term loans for Atmore drivers is that since you’re paying for a longer period of time, you’ll be paying more interest over time. Vehicle depreciation is also a problem, but since you’d be financing a used car, this isn’t a huge deal as the value of the used car has already taken a hit. Though, negative equity is still a concern, which is when the car’s cash value is less than the total balance of the loan.
Ready to discover a new-to-you car now that you know the answer to, “How long can I finance a used car?” Browse our used vehicle specials at Lee Motor Company for more ways to save, so that you can take home your favorite used car in no time.
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