How Long Can You Finance a Used Car?

We offer a wide variety of high-quality pre-owned vehicles for sale here at Land Rover Monmouth, and while our prices are very competitive, most Colts Neck-area drivers prefer to choose a used car finance plan. So, how long can you finance a used car? On average, the auto loan term for a pre-owned vehicle is 60 to 72 months. Whether a long-term loan or a short-term loan is best for you will depend on your personal preference and what you can afford to pay each month. Learn more about financing a used car, then visit us in Eatontown to explore your used car finance options today!

Financing a Used Car Near Rumson

How long can you finance a used car? In general, there are no restrictions on the length of a used car loan. That being said, some lenderslimit used car loans to seven years and won’t offer loans on a vehicle with more than 100,000 miles. You should make sure to check with your lender to find out about any limits or restrictions they may have on financing a used car.

Pros & Cons of Short-Term Loans

Short-Term Auto Loan Pros:

• Faster Pay-Off: The monthly payment is higher with a short-term auto loan, so you will be able to pay off the loan faster. 
• Low-Interest: Short-term car loans typically come with lower interest rates.
• Refinancing: If interest rates drop, qualified lessees may have the option to refinance their auto loan. 

Short-Term Auto Loan Cons: 

• Higher Monthly Payment: A short-term used car finance loan will come with a higher monthly payment, so you should make sure that the required monthly payments will work with your budget. 

Pros & Cons of Long-Term Loans

Long-Term Auto Loan Pros: 

• More Affordable Monthly Payment: With a long-term used car finance loan you’ll have lower monthly payments, and depending on the terms of your loan, you may be able to make a higher monthly payment whenever you can in order to repay it faster.

Long-Term Loan Cons: 

• Higher Interest Rates: Long-term auto loans come with higher interest rates, so the longer the car loan, the more interest you’ll pay over time.
• Vehicle Depreciation: The rate of depreciation slows down as a car ages. However, the longer the loan length, the more risk you have of ending up in a negative equity situation where your car’s value is less than the balance you owe. 

Learn More About Financing a Used Car at Land Rover Monmouth

The finance team at Land Rover Monmouth can fill you in on in-house used car financing near Red Bank and help you to determine whether a short-term or long-term used car loan is best for you. Meanwhile, make sure to take a look at our pre-owned vehicle specials to take advantage of our current offers. If you have any questions, please feel free to contact us online or call us at (877) 672-8810.