How Long Can You Finance a Used Car?

As you’re looking for a pre-owned vehicle near Merriam, you might wonder about used car financing. If you ask, “How long can I finance a used car?” you’re not alone. Many Kansas City, MO buyers are keeping a close eye on their budgets, and the longer you finance it, the smaller your monthly payments will be.

But how long can you finance a used car? The average pre-owned vehicle auto loan term is 60 to 72 months, and your loan length will go up as auto prices increase. Your auto loan length will also depend on what you can pay monthly. Learn more below and use our online calculator to estimate your monthly payments.

How Long Can I Finance a Used Car? – The Basics

How long can you finance a used car near Wichita, KS? While there is no firm limit on a pre-owned vehicle loan length, some lenders might place restrictions. For instance, some banks will limit used car loans to seven years and won’t provide loans to vehicles with more than 100,000 miles. You can always contact our finance team regarding the rules you must navigate when financing a pre-owned vehicle.

Pros & Cons of Short-Term Loans

Short-Term Auto Loan Pros:

• Faster Pay-Off: Since your monthly payment is higher, you can repay the loan faster. 
• Low-Interest Expenses: You’ll likely get a lower interest rate on a shorter-term vehicle loan.
• Refinancing: If you qualify, you can refinance your loan when interest rates drop.

Short-Term Auto Loan Cons: 

• Higher Monthly Payment: The shorter your auto loan term, the higher your monthly payments are. Make sure you can afford these payments so they won’t strain your Omaha, NE budget.

Pros & Cons of Long-Term Loans

Long-Term Auto Loan Pros: 

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

Long-Term Loan Cons: 

• Higher Interest Rates: Long-term auto loans offer higher interest rates and 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 age. The longer your loan length, the more chance you have of ending up in ‘negative equity,’ when your car’s value is less than the balance you owe.

Finance a Used Car With Alfa Romeo Kansas City

Now that you have an answer to the question, “How long can I finance a used car?” turn to the auto experts at Alfa Romeo Kansas City. We take all the hassle out of financing your like-new vehicle with our online credit application. To reduce what you’ll owe on your next model, you can use our trade-in tool to calculate its trade-in value. Experience our pre-owned cars near Kansas City, MO at Alfa Romeo Kansas City!