How Long Can You Finance a Used Car?

Financing a used car near Providence can be the easiest way to get behind the wheel of the affordable, high-quality pre-owned vehicle you need. Most used car buyers who are keeping a close eye on their budget will notice that a longer auto loan term will mean a smaller monthly payment. So, how long can I finance a used car? The average 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 primarily on what you can afford to pay each month. Learn more about financing a used car in this guide from INFINITI of Warwick, then visit our dealership to check out our extensive inventory of pre-owned cars, trucks, and SUVs today!

Financing a Used Car Near Providence

How long can I finance a used car? While there is no strict limit on the length of a used car loan, some Coventry lenders limit used car loans to seven years and won’t offer loans on a vehicle with more than 100,000 miles. So it is important that you check with your lender upfront to find out about any restrictions they may have on financing a pre-owned vehicle.

Pros & Cons of Short-Term Loans

Short-Term Auto Loan Pros:

• Faster Pay-Off: Since the monthly payment is higher with a short-term auto loan, you will be able to pay off the loan faster.
• Low-Interest Expenses: Short-term car loans typically offer a lower interest rate.
• 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 main drawback on a short-term auto loan is the higher monthly payment. You should make sure beforehand 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: You’ll pay less each month with a long-term auto loan, and you can always 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 usually come with higher interest rates, and 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.

Explore Your Used Car Financing Options With INFINITI of Warwick Today

How long can you finance a used car? There are both short-term and long-term used car loan options, and the finance team at INFINITI of Warwick can help you decide which is best for you. Whether you’re looking for in-house used car financing near Cranston or are interested in leasing a used vehicle in Warwick, we’re here for you. Make sure to explore our current used vehicle specials, then apply for financing with us online. Please feel free to contact us if you have any questions.