How Long Can You Finance a Used Car?

Among the many questions we receive here at the The Garage at Bettenhausen finance center, “How long can I finance a used car?” is perhaps the most frequently asked. But how long can you finance a used car? While much depends on your budget and the amount you need to finance, a general loan term ranges from 60 to 72 months. We want to help you find the ideal pre-owned vehicle for both your Orland Park and Oak Forest driving needs and your budget, so we offer this detailed answer to the question, “How long can I finance a used car?”.

How Long Can I Finance a Used Car?

So, how long can you finance a used car? There is no officially mandated limit. With that said, most lenders have limits in place. For example, a maximum seven-year loan for a used vehicle is not uncommon. This means you should always check directly with any lenders you’re considering and find out their policies.

Advantages & Disadvantages: Short-Term Loans

If you opt for a shorter-term loan, there are both benefits and drawbacks to keep in mind. Let’s break each of them down:

• Faster Pay-Off – A short-term loan allows you to pay off your loan much quicker.
• Less Interest – Short-term loans typically offer lower interest rates, which can add up to substantial savings over the life of the loan.
• Easier Refinancing – If you want to refinance for a better interest rate sometime in the future, it’s often easier to refinance a short-term loan.

A short-term loan comes with one disadvantage, which can be prohibitive to the budget-conscious car buyer:

• Higher Monthly Payments – Your monthly payment will almost certainly be higher with a short-term loan. Not sure what you can afford? Calculate your payments now to start designing your budget.

Advantages & Disadvantages: Long-Term Loans

Longer-term loans, too, have benefits and drawbacks. Here is one big advantage:

• Lower Monthly Payments – The total amount you owe is distributed over a larger number of months, which results in more budget-friendly monthly payments.

And, of course, there are disadvantages to take into account as well:

• Higher Interest – Long-term loans charge more interest, as the loan term is longer.
• Depreciation Risk – All vehicles, from passenger cars to mobility vans, lose some of their value as they age. With a longer-term loan, there is a higher risk of owing more on your vehicle than its current value.

Explore Used Car Financing Options at The Garage at Bettenhausen

How long can you finance a used car? As you can see, exact loan terms vary, and there are pros and cons of both short- and long-term auto loans. When you’re ready to find your next classic car or pre-owned mobility van, check out our latest selection at The Garage at Bettenhausen, and apply for financing conveniently online. You can also stop by our Tinley Park showroom to discuss your financing needs in person; we’re just a short drive from Frankfort. Our finance team is on hand to help you get the right loan option for your budget, ensuring you drive off the lot with a vehicle that checks all the boxes on your wishlist — and at a price you can afford.