How Long Can You Finance a Used Car?

If you’re tired of your old clunker and are used car shopping in Long Island City on a tight budget, you may wonder, “How long can I finance a used car?” Fortunately, the team at Major World is always happy to help. The longer your loan term, the smaller your monthly payment is. The average auto loan term for a pre-owned vehicle is 60 to 72 months, and the loan length is trending up along with car prices. The length of your car loan depends on the amount you can afford to pay monthly, and our payment calculator estimator can help you determine what you can afford to pay. Learn more about used car financing here with Major World.

Financing a Used Car

If you’re still scratching your head and wondering, “How long can I finance a used car?” you should know that there’s no precise limit on the length of a used car loan around Queens. Still, some car lenders have internal policies that restrict loan length. Some banks limit pre-owned auto loans to no more than seven years and refuse to fund loans on vehicles with over 100,000 miles. We at Major World recommend checking with various lenders and to about any restrictions they have on financing a used car.

Pros & Cons of Short-Term Car Loans

Short-Term Car Loan Pros:

• Faster Pay-Off: With a higher monthly payment you will repay your auto loan faster. 
• Low-Interest Expenses: Shorter-term auto loans have lower interest rates. 
• Refinancing: If you qualify, you can refinance your car loan later if interest rates drop. 

Short-Term Car Loan Cons: 

• Higher Monthly Payment: The shorter your car loan length, the more you’ll pay each month. Make sure you can afford the higher monthly payment and that it won’t strain your household budget. A good rule of thumb is that your auto payment shouldn’t exceed 10% of your gross monthly income in Brooklyn.

Pros & Cons of Long-Term Car Loans

Long-Term Car Loan Pros: 

• Less Monthly Payment: With a longer-term auto loan, you’ll have a smaller monthly payment than with a short-term car loan. You can always make a higher monthly payment when you can afford it and pay it off your car loan faster.

Long-Term Car Loan Cons:

• Vehicle Depreciation: Cars depreciate as the years go by, except for some classic cars. But depreciation rates do slow down as the car ages. The longer the loan, the more risk you have of ending up with negative equity, which is when your vehicle’s value is less than the balance of your auto loan. 
• Higher Interest Rates: Long-term auto loans have higher interest rates, so the longer the loan, the more interest you’ll end up paying in the long term.

Finance a Pre-Owned Car Today With Major World

Now that the Major World finance team has answered the common question, “How long can you finance a used car?” turn to us for all your auto needs. From our no-hassle online credit application to receiving a value for your trade-in online, doing business with us is easy! Let’s go for a test drive around Bronx today!