How Long Can You Finance a Used Car?

Many Brandon drivers are keeping a close eye on their budget, so we often hear questions like, “How long can I finance a used car?” The finance experts at Lexus of Tampa Bay near Town 'N' Country are here to help! A longer financing term means your monthly payments will be smaller. The average auto loan term for a pre-owned vehicle is 60 to 72 months, and the loan length will keep going up as auto prices go up. You can use our payment calculator to estimate your monthly payments as well as determine the right length for your auto loan. Learn more about applying for financing here with Lexus of Tampa Bay.

Financing a Used Car

How long can you finance a used car? There isn’t a single set limit on the duration of a used car loan, but some Riverview lenders will place their own limitations and restrictions. Some banks limit used car loans to seven years and won’t offer loans on a vehicle with more than 100,000 miles. Check with the lender you’re considering to ask about restrictions on financing a pre-owned vehicle.

Pros & Cons of Short-Term Loans

Short-Term Auto Loan Pros:

• Faster Pay-Off: You will pay the loan faster with higher monthly payments. 
• Low-Interest Expenses: You’ll likely get a lower interest on a shorter-term car loan. 
• Refinancing: If you qualify, you can always refinance your auto loan if your interest rate gets lower. 

Short-Term Auto Loan Cons: 

• Higher Monthly Payment: The shorter the auto loan term, the more you will pay each month. Be sure to make sure you can afford this amount each month. 

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 will have to pay less each month per month. You can also pay a higher amount to pay it off more quickly. 

Long-Term Loan Cons: 

• Higher Interest Rates: Long-term auto loans offer higher interest rates, and the longer the car loan, the more interest you’ll pay overall.
• Vehicle Depreciation: Cars depreciate as they age, but the rate of depreciation slows down as the years go by.

Finance a Used Car With Lexus of Tampa Bay Today

We invite you to browse our impressive selection of certified pre-owned vehicles and used models, so contact us to take a test drive!