How Long Can You Finance a Used Car?

Can you finance a used car? Yes, used car financing is very common in the Scottsdale area. How long can you finance a used car? The average loan-term when financing a used car is between 60 and 72 months. Learn about how to finance a used car and explore the differences between short-term and long-term loans in this guide from the finance team at Scottsdale Maserati. Then stop by our dealership in Phoenix to check out the high-quality used vehicles we have in stock today!

Long-Term vs. Short-Term Loans

So, how many years can you finance a used car? As noted above, the average loan term for Paradise Valley drivers is between 60 months (5 years) and 72 months (6 years). Most lenders tend to put a 7-year cap on loan term length. When looking at how to finance a used car you should be aware that it may be difficult to find a loan on a vehicle that has over 100,000 miles on the odometer. With this factors in mind, compare the perks of a short-term loan to the perks of a long-term loan:

Pros & Cons of Short-Term Loans

Pros:

• Less Interest: With a short-term loan you’ll pay less interest overall compared to a long-term loan. It is also often possible to negotiate a lower interest rate with a short-term loan.
• Faster Buyout: A shorter term allows you to pay your loan off much more quickly.

Cons:

• Higher Monthly Payment: Your monthly payments will be based upon the sum of the principal of your loan and interest divided by the number of months for your loan term. Therefore, the monthly payments on a short-term loan term will be higher.

Pros & Cons of Long-Term Loans

Pros:

• Lower Monthly Payment: With a long-term loan, you’re dividing the total loan by a greater number of months, so you’ll make much lower payments each month.

Cons:

• More Interest: Lower payments are nice, but you’re going to pay more interest over the course of a long-term loan.
• More Depreciation: You have a greater risk of developing negative equity with a long-term loan. Negative equity is when you owe more on your car loan than it is worth in the marketplace. This could put you in a position where you’re still paying off a portion of the car loan if you wind up selling your vehicle.

Explore Your Used Car Financing Options at Scottsdale Maserati

Can you finance a used car? Yes. How long can you finance a used car? You’ll most likely have the option of choosing either a 60-month or a 72-month loan, depending on the vehicle and the lender. If you have any questions regarding how to finance a used car, get in touch with our finance center. We can help you determine the best way to finance a used car, as well as fill you in on what to look for when buying a used car. Meanwhile, take a moment to browse our current used vehicle specials to take advantage of some of the best deals in the Chandler area.