How Long Can You Finance a Used Car?

If you’re planning on financing a used car that you’ll be driving around Jackson, then you probably have some questions regarding the length of time for which you can finance a used car. Financing a used car doesn’t have to be complicated, especially with Wilson KIA. Take a look at our comprehensive guide put together by the finance experts at Wilson KIA. We’ll show you how long you can finance a used car for and everything else you need to know.

Average Time for Financing a Used Car

So, just how long can you finance a used car? There isn’t technically a set limit on the amount of time for which you can finance a used car, but some lenders might restrict the amount of time that you can spend financing a used car. Some banks do limit used car financing to seven years, and some banks won’t offer you financing for a used car that has over 100,000 miles on it. To know exactly how long you can finance a used car, you’ll need to check with your Flowood-area lender. 

Financing a Used Car: Long-Term vs. Short-Term Loans

When financing a used car, you’ll be given the option of a long-term or short-term loan. There are advantages and disadvantages to both options, so to see which option is more suitable for your lifestyle and driving needs around Ridgeland, take a look each option below: 

Short-Term Auto Loan Advantages:

• Quicker Pay-Off: A short-term loan has a higher monthly payment, but this allows you to repay the loan quicker. 
• Low-Interest: Short-term loans usually come with a lower interest rate compared to long-term loans.
• Refinancing: Refinancing your loan at a later point in time can be a smart option if your interest rates drop. You may or may not qualify, so you’ll want to check with your lender. 

Short-Term Auto Loan Disadvantages: 

• Higher Monthly Payment: As mentioned earlier, a short-term loan has a higher monthly payment than a long-term loan will. 

Long-Term Auto Loan Advantages: 

• Lower Monthly Payment: A long-term car loan means that you’ll pay less each month compared to a short-term loan. 

Long-Term Loan Disadvantages: 

• Higher Interest: Because they have lower monthly payments than short-term loans, long-term loans will higher interest rates. 
• Vehicle Depreciation: Vehicles, new or used, lose their value as time passes. For a long-term loan, your vehicle will be worth less at the end of the loan term than it would be at the end of a short-term loan. 

To see which would be better for financing a used car, reach out to our finance experts at Wilson KIA, and don’t forget to check out our other car-buying tips and best practices. 

Finance Your Used Car in Brandon With Us!

Hopefully, you have a better idea of how long you can finance a used car for and which loan term is right for you. Contact us if you still have questions or if you want to check out our used inventory.