Can You Finance a Used Car?
Can you finance a used car? You certainly can! But how long can you finance a used car for? Five to six years or 60 to 72 months is typically how many years you can finance a used car. Your real-life answer to this question will depend on the financing outlet you’re working with. The finance team at Sterling Automotive Group is ready to help Lafayette drivers get the deal and financing terms they’re looking for. Can you finance a used car and still get a great deal when you go with us? When you’re working with us, we’ve got you covered.
How to Finance a Used Car
How long can you finance a used car? There isn’t a hard and fast limit on the length of a used car loan, but you’ll certainly run into some kind of restriction when you talk to your lender. How many years can you finance a used car? Some banks limit used car loans to seven years and won’t offer loans on a vehicle with more than 100,000 miles. Check with your lender to see how to finance a used car in line with their rules.
Pros & Cons of Short-Term Loans
Short-Term Auto Loan Pros:
- Faster Pay-Off: Since your monthly payment is higher, you’ll pay off the loan faster.
- Low-Interest Expenses: You’ll likely pay less in interest on a shorter-term car loan.
- Refinancing: If rates drop, you’ll save money by refinancing later.
Short-Term Auto Loan Cons:
- Higher Monthly Payment: The shorter the auto loan term, the higher your monthly payment will be. Be sure a higher monthly payment won’t strain your household finances in Baton Rouge.
Pros & Cons of Long-Term Loans
Long-Term Auto Loan Pros:
- More Affordable Monthly Payment: Alexandria drivers who select a long-term loan will pay less per month. You have more flexibility; that is, you can make a higher monthly payment to repay the loan faster.
Long-Term Loan Cons:
- Higher Interest Rates: Long-term auto loans have higher interest rates, and the longer the car loan, the more interest you’ll pay over the life of the loan. This is the flip side to the question: How long can you finance a used car?
- Vehicle Depreciation: Cars depreciate as they age, but the rate of depreciation slows down as they age. The longer your loan term, the more risk you’ll run of ending up in a negative equity situation. That’s when your car’s value is less than the balance you owe.
Finance a Used Car With Sterling Automotive Group Today
Now you’ve got the answers to the questions: Can you finance a used car? and How many years can you finance a used car? If you’re looking to explore more, the team at Sterling Automotive Group can help you take the next step. Our used vehicle specials will save you some money on your next car purchase, and our Acadiana experts near Alexandria are ready to work with you regardless of your credit history. Contact us today!
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