How Long Can I Finance a Used Car?

If I want to get the best deal possible, how long can I finance a used car in Bedford or Chardon? Though the average auto loan term is about 60 to 72 months, it’s expected keep increasing as car prices increase. And while there are a few loose restrictions that lenders put in place, the decision is ultimately up to you. Find out how to choose the best loan term length for your needs, and get more financing tips from Classic Volkswagen!

What’s the Longest Loan Term I Can Choose?

For the most part, there is no official limit on your loan term in Willoughby. But, many banks prevent buyers from financing vehicles that are older – typicallyover seven years old and with over 100,000 miles on the odometer. It’s a good idea to ask your lender for specifics before you start the paperwork process, so you know what to expect.

What Are the Pros & Cons of Short-Term Loans?

Short-Term Loan Pros:

• Low Interest Expenses: The shorter the loan term, the less total interest you’ll pay. 
• Faster Pay-Off: Because you’re paying more money every month, you’ll pay off your loan faster. 
• Refinancing: Short term loans leave you “upside down” for far less time, which means it’s easier to refinance more quickly – which means even better loan terms. 

Short-Term Loan Cons: 

• Higher Monthly Payment: Paying off a loan quicker means paying it off in bigger chunks. If you don’t have the financial safety net, dealing with higher monthly payments can be a big stressor. 

What Are the Pros & Cons of Long-Term Loans?

Long-Term Loan Pros: 

• More Affordable Monthly Payment: Longer loan terms mean smaller payments every month, which is more budget-friendly. 

Long-Term Loan Cons: 

• Higher Interest: The longer the loan, the more interest paid overall. 
• Vehicle Depreciation: Your car depreciates over time and over the length of a long car loan, this means you could be left in “negative equity” for a longer period of time.

Get Affordable Financing Solutions at Classic Volkswagen! 

So, how long can I finance a used car? Explore your options with Classic Volkswagen in Mentor. Our team can help you find the financing solutions that you need, so contact us and get pre-approved today.