How Long Can You Finance a Used Car?

Do you want a luxury vehicle but are afraid you can’t afford a new one? We have the solution with used car financing at Jaguar North Haven near New Haven. You could get a lower amount for an auto loan to have more affordable monthly payments. Our payment calculator can help you develop a monthly budget. Also, you’re not alone in Wallingford because 80% of car owners utilize auto loan financing to purchase their vehicles.

Read our guide about how long you can finance a used car. We think the answer might surprise you!

How Long Can I Finance a Used Car?

In general, how long you can finance a used car or pre-owned vehicle is 60 to 72 months. The length of your auto loan depends on what you can afford to pay each month. It also depends on what kind of loan you could get from when you check with your chosen lenders. 

How Long Can You Finance a Used Car at Jaguar North Haven?

How long you can finance a used car depends on what offers you get back when you apply for financing. You can check with your financial institution, a bank, a credit union, or a dedicated auto lender. Our finance team has long-standing relationships with auto lenders. When you apply for financing through our dealership near %%target_3%%, we’ll go to bat for you when presenting your application to lenders. We’ll try to get you the best terms based on your interest rate and loan length.  

Financing a Used Car

Some auto lenders in North Haven and beyond place restrictions on the auto loan length for a used car, truck, or SUV. 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. Our certified pre-owned vehicles generally get very good financing terms if you qualify. So, how long you can finance a used car could also depend on the vehicle you choose.

Pros & Cons of Short-Term Loans for Your Purchase

Short-Term Auto Loan Pros

• Faster Pay-Off: Because your monthly payment is higher, you will repay the loan faster. 
• Low-Interest Expenses: You’ll likely get a lower interest on a shorter-term car loan because you’re borrowing money for a shorter period of time.
• Refinancing: If you qualify, you can always refinance your auto loan later if interest rates drop. 

Short-Term Auto Loan Cons 

• Higher Monthly Payment: The shorter the auto loan term, the higher your monthly payment will be. Budget carefully for your used vehicle, including repair and refueling costs.

Pros & Cons of Long-Term Loans When Buying a Car

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. You’ll likely pay more in interest over the life of the loan.  
• Vehicle Depreciation: Cars depreciate as they age, but depreciation rates slow down as they age. 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. If your vehicle becomes undrivable, you might end up paying for a car you no longer drive after the insurance settlement. 

Test-Drive a Used Car for Sale at Jaguar North Haven Today

Ready to see what used car financing is like at Jaguar North Haven? Contact us or call 203-453-7060 to schedule a test drive with our team. Read our car-buying tips to learn how to shop for your next four-wheeled family member like a pro!