How Long Can You Finance a Used Car?

If you're looking through used cars near Hereford, you might be asking, “How long can I finance a used car?” If this describes you, you're not alone. Many drivers are budget-conscious and the longer you can finance a used car, the smaller your monthly payment will be. How long can you finance a used car in Amarillo, however? Typically, your auto loan will run between 60 and 72 months. How long can you finance a used car based on your budget? You'll want to use our payment calculator to figure that out.

Street Volkswagen of Amarillo is here to help you make a smarter choice when buying a car. Our team is ready to help you!

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Used Vehicles

Financing a Used Car

How long can you finance a used car? There's no hard and fast limit, but the most common options are 60 months and 72 months. However, most banks in Pampa limit used car loans to seven years and won't offer loans on a vehicle with more than 100,000 miles. Check with your local lender to ask about restrictions on financing a pre-owned or Certified Pre-Owned vehicle.

Pros & Cons of Short-Term Loans

Short-Term Auto Loan Pros:

  • Faster Pay-Off: Since your monthly payment is higher, you'll pay the loan off quicker.
  • Low-Interest Expenses: You'll likely get a lower interest rate on a shorter-term loan.
  • Refinancing: If you qualify, you can always refinance your auto loan later if interest rates drop.

Short-Term Auto Loan Cons:

  • Higher Monthly Payment: The shorter your auto loan term, the more you'll pay each month. Be sure you can afford the higher monthly payment.

Pros & Cons of Long-Term Loans

Long-Term Auto Loan Pros:

  • More Affordable Monthly Payment: With a longer-term auto loan, you'll pay less every month. You can always make a higher monthly payment to repay it faster.

Long-Term Loan Cons:

  • Higher Interest Rates: Long-term auto loans typically come with a higher interest rate. In addition, the longer the car loan, the more interest you'll pay over the life of the loan.
  • Vehicle Depreciation: Cars depreciate as they get older, but the rate of depreciation slows as time passes. The longer your loan term is, the greater your risk of owing more on the car than the car is worth. This is called negative equity.

Finance Your Next Used Car With Street Volkswagen of Amarillo

You've been given a concrete answer to “How long can I finance a used car?” But how long can you finance a used car at Street Volkswagen? Our team will walk you through your situation and figure out a financing solution that's suited to your needs. Apply for financing to get pre-approved for your next auto loan near Dumas.