Can You Finance a Used Car?

If you’re considering a used or certified pre-owned vehicle but aren’t able to pay the full price upfront, used car financing is a viable option. But how long can you finance a used car? Loan terms for used cars typically range from 60 to 72 months, though certain restrictions may apply depending on the lender and vehicle age. Learn more in our guide below, then contact us at Warner Robins Chrysler Dodge Jeep Ram FIAT to discuss your financing options and find a plan that works for you.

Used Car Financing Restrictions

How many years can you finance a used car at a maximum? There aren’t any official limits when it comes to the length of your used car loan term, but different lenders may set their own restrictions. Some may even have policies that don’t allow buyers to finance used vehicles that have more than 100,000 miles on the odometer or that are more than seven years old. 

That said, you shouldn’t worry about not being able to find a used car loan length that’s sufficiently long. Warner Robins Chrysler Dodge Jeep Ram FIAT has relationships with a wide range of Macon-area lenders, and our experts are here to help you find a lender that can work with your needs!

Short Used Car Loan Term: Pros & Cons

Even if you can finance a car for a longer term, you may want to consider a shorter loan length. As long as you can comfortably pay the amount each month, doing so has significant benefits and can save you money in the long run.

Short-Term Loan Pros

• Less Interest: Interest is added to your monthly payment each month. If you’re paying your loan for less time, you’ll pay less in interest over the course of a shorter loan term than a longer loan term.
• Faster Pay-Off: You can enjoy the benefits of ownership—like having no monthly car payment at all—with a shorter loan term.
• Easier Refinancing: It’s easier to refinance your car loan if you have a short loan term since you’ll have spent less time with negative equity.

Short-Term Loan Cons

• Higher Monthly Payment: Because you’re splitting your total cost into fewer monthly payments, you’ll be paying a higher amount each month. It’s always best to select a loan term length with a monthly payment that’s comfortably within your budget. Our payment calculator tool can help you find a loan length and payment that work for you!

Long Used Car Loan Term: Pros & Cons

A longer loan term comes with benefits like a lower monthly payment, while possible drawbacks include paying more in overall interest.

Long-Term Loan Pros 

• Lower Monthly Payment: With a longer loan term, you’re spreading the total cost of your vehicle over a longer period of time. That means you’ll pay a smaller monthly amount for the duration of the term.

Long-Term Loan Cons

• Higher Interest: The longer the loan term, the more interest accrues by the end.
• Vehicle Depreciation: Whether new or used, all cars depreciate over time. If you plan to sell your car at the end of your loan term, be aware that it will have lost more value by the end of a longer loan term than a shorter term.

Secure a Used Car Loan With Warner Robins Chrysler Dodge Jeep Ram FIAT Today

Ready to explore your financing options? Our team is here to guide you through every step of the process, ensuring a smooth and stress-free experience. Contact us today or visit our dealership near Perry and Bonaire to discuss your options in person. For added convenience, get pre-approved for financing online. We look forward to working with you!