How Long Can You Finance a Used Car?

For how long can you really finance a used car? Financing a used car in Lakeland is easier than you think, and the longer you finance a car means the less you’ll be paying per month. The trade-off is that you’ll be paying more over time in interest, but you can easily add more to a given monthly payment to lower that total amount of accrued interest. The average auto loan term for a pre-owned vehicle is 60 to 72 months, and the loan length keeps going up as auto prices go up. Learn more with us below before exploring your trade-in options near Sebring with us!

Financing a Used Car in Lakeland

How long can you finance a used car? The length of a used car auto loan varies for Auburndale drivers and beyond, but some lenders will place limits and restrictions. There’s no firm limit on the length of a used car loan, but some Bartow lenders place restrictions on auto loan length. Some banks limit used car loans to seven years and won’t offer loans on a vehicle with more than 100,000 miles.

Pros & Cons of Short-Term Loans

Short-Term Auto Loan Pros

• Low-Interest Expenses: You’ll likely get a lower interest on a shorter-term car loan. 
• Faster Pay-Off: You’ll pay off your loan faster if the monthly payment is higher.
• Refinancing: You can always refinance your auto loan later if interest rates drop, assuming you qualify.

Short-Term Auto Loan Cons

• Higher Monthly Payment: Make sure that you’re able to pay the higher amount that comes with a short-term auto loan.

Pros & Cons of Long-Term Loans

Long-Term Auto Loan Pros

• More Affordable Monthly Payment: When you opt for a longer-term auto loan, you’ll pay less every month than if you had a short-term loan. You can always make a higher monthly payment to repay it faster.

Long-Term Loan Cons

• Higher Interest Rates: Long-term auto loans offer higher interest rates, meaning you’ll pay more over time.
• Vehicle Depreciation: The longer the loan length, the more risk you have of ending up in a negative equity situation, which is when your car’s value is less than the balance you owe. 

Make Us Your Lakeland Used Car Dealer

Consider financing a used car in Lakeland with us at Cadillac Lakeland. We’re here for Auburndale drivers from start to finish throughout the car-buying process, and we offer plenty of car-buying tips. Visit our financing center today for more information! We look forward to being your preferred Lakeland used car dealer.