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Can You Finance a Used Car?

2019 Ford Fiesta rear
 

Can you finance a used car in Pella? And just how long can you finance a used car? If you’re shopping on a budget, financing a used car can be a great way to secure a fantastic ride at an unbeatable price. The average auto loan term for a pre-owned vehicle is 60 to 72 months. The longer your loan term, the smaller your monthly payments. However, there are pros and cons to consider before you sign any paperwork. Find out how to finance a used car without breaking your budget, and learn more car shopping tips with us at DeYarman Automotive Group!

 

 

How to Finance a Used Car

How many years can you finance a used car in Knoxville and Indianola? Some banks limit used car loans to seven years and won’t offer loans on a vehicle with more than 100,000 miles. However, these are terms set by the lenders themselves. Since there is no firm limit on the length of a loan, be sure to speak with potential lenders about any restrictions they might have.

Pros & Cons of Short-Term Loans

Short-Term Auto Loan Pros:

  • Faster Pay-Off: Higher monthly payments help to speed up the repayment process.
  • Low-Interest Expenses: Short-term car loans often qualify for lower interest rates.
  • Refinancing: If you choose, you can also refinance the terms of your loan in the future.

Short-Term Auto Loan Cons:

  • Higher Monthly Payment: Higher monthly payments mean faster repayment, but only if you can afford them. Use our payment calculator to ensure you won’t strain your finances.

Pros & Cons of Long-Term Loans

Long-Term Auto Loan Pros:

  • More Affordable Monthly Payment: The longer the loan, the lower the monthly payments.

Long-Term Loan Cons:

  • Higher Interest Rates: Since you pay interest every month, you’ll pay more interest on a long-term loan compared to a short-term loan.
  • Vehicle Depreciation: Cars depreciate over time, so the longer you pay off your loan, the more your car will lose value. This could potentially put you in a position of negative equity, so be sure to choose your loan term carefully.

Find Finance Offers in Knoxville at DeYarman Automotive Group

You’ve learned the basics, so now let’s explore your finance offers in Knoxville! Get the financing process started at DeYarman Automotive Group today, and get one step closer to your next car. You can apply for financing online or just stop by one of our locations to discuss your options in person.

 

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