How Long Can You Finance a Used Car?

Are you looking for a like-new vehicle for your next Miramar ride? As a result, you might ask, “How long can I finance a used car?” Many North Miami drivers are keeping a watchful eye on their budget, and the longer you can finance said vehicle, the smaller your monthly payment will be. But how long can you finance a used car?

The average auto loan term for a pre-owned vehicle is 60 to 72 months and the loan length goes up as auto prices increase. Your auto loan length will depend on how much you can afford to pay every month, and our online calculator can help you estimate your monthly payment. Learn more about financing a used car in the following overview from North Miami Mitsubishi!

Financing a Used Car – What Does it Involve?

“How long can I finance a used car?” While there’s no firm limit on the length of a used car loan, some Doral-area lenders do place restrictions on auto loan length. Some banks may limit used car loans to seven years and won’t offer loans on vehicles with more than 100,000 miles. You should always check with your lender about any restrictions on financing a pre-owned model.

Pros & Cons of Short-Term Loans

Remember that how long you can finance a used car depends on what type of loan you consider. Let’s explore short and long-term loans to see which works best for you and your budget.

Short-Term Auto Loan Pros:

• Faster Pay-Off: Financing a used car in the short term means lower payments and the ability to repay your loan faster.
• Low-Interest Expenses: You’ll get a lower interest rate on a shorter-term car loan.
• Refinancing: If you qualify, you can refinance your auto loan later when interest rates drop.

Short-Term Auto Loan Cons: 

• Higher Monthly Payment: The shorter your auto loan term, the higher the payments will be. Be sure you can afford a higher monthly payment and that it won’t strain your Hialeah-area budget.

Pros & Cons of Long-Term Loans

Long-Term Auto Loan Pros: 

• More Affordable Monthly Payment: Choosing a longer-term auto loan, you’ll pay less each month than if you had a short-term loan. You can always make higher monthly payments to repay it faster.

Long-Term Loan Cons: 

• Higher Interest Rates: Long-term auto loans offer higher interest rates. The longer the car loan, the more interest you’ll pay.
• Vehicle Depreciation: Cars will depreciate as they age, but depreciation rates slow down as they get older. The longer your loan length, the more risk of ending up in a negative equity situation when your car’s value is less than the balance you owe.

Finance a Used Car With North Miami Mitsubishi Today

Now that you have an answer to “How long can I finance a used car?” turn to North Miami Mitsubishi for all your car needs. We take all the hassle out of financing a pre-owned vehicle with our pre-approval application. You can also explore our pre-owned specials and see what catches your eye. Finance your next vehicle near Miramar with North Miami Mitsubishi!