How Long Can You Finance a Used Car?

For how many years can you finance a used car when you buy a car in Temecula? Drivers can expect a used car loan to last between 60 to 72 months, generally, as some of the most common loan term periods. Learn more about used car financing loan periods below before applying for financing yourself on your next quality used or certified pre-owned vehicle from Temecula Valley Lexus.

For How Many Years Can You Finance a Used Car?

How long can you finance a used car if you’re financing through a bank or car dealership like Temecula Valley Lexus? There aren’t any official limits on a given loan term, but some lenders may have their own restrictions in specific situations or on a specific loan offer. Some lenders won’t want to finance a car with over 100,000 miles on it for example, or if they’re over seven years old.

Generally speaking, if you’re considering a used car loan near Lake Elsinore, it’s generally a better long-term option to choose a shorter-term loan. You’ll be paying more per month if you choose a 60-month or even a 48-month loan on a used vehicle. But you’ll also be paying significantly less in interest overall. If you can pay the amount per month on time, it literally saves money in your wallet to choose a shorter-term loan on your next used vehicle.

Short-term Loans: Pros & Cons

Short-Term Loan Pros

• Less Interest Overall: The shorter the long term, the less you’ll pay per month in interest over time.
• Faster Pay-Off Overall: You’ll quickly pay off your loan with a shorter loan term, giving you full ownership of your vehicle faster.
• Easier Refinancing Overall: You’ll have spent less time in negative equity if you have a shorter loan term, putting you in a better position to sell your vehicle.

Short-Term Loan Cons

• More Expensive Per Month: Fewer monthly payments mean paying more per month compared to longer loan terms like 72-month loan periods. If you can’t afford a 48-month or 60-month loan term for your specific vehicle, it’s always a better option to choose a longer loan term or to consider a different vehicle. Even if you have a longer loan term, you can usually add more per month to your payment when you can to help reduce the total interest paid over time– on top of lowering the total loan amount.

Long-term Loans: Pros & Cons

Long-Term Loan Pros 

• Lower Monthly Payments Overall: Many drivers benefit from longer loan terms, because they’re able to pay the given amount per month much easier compared to shorter-term loans. You’ll enjoy lower monthly payments, but you’ll be paying more in interest over time. Again, you can generally add more money to a given monthly payment when you’re able with no negative consequences, and this will help you lower the total cost of your vehicle. Always be sure to check to see if there are any penalties to paying off your car early though before finalizing your loan terms.

Long-Term Loan Cons

• Higher Interest Overall: Long-term loans come with more interest paid overall over time, and this can add up.
• More Vehicle Depreciation Overall: All cars depreciate over time, and having a longer loan term means you’ll lose more value over time if you’re considering selling in the future.

Choose Temecula Valley Lexus for Used Car Financing

How long can you finance a used car? Vista drivers generally have a good amount of leeway when it comes to loan terms, and our team is ready to help you find the loan term that works best for you. Contact us today to learn more about your options after taking a test drive in your next new-to-you vehicle!