How Long Can You Finance a Used Car?

Are you searching El Paso for a pre-owned vehicle and wondering, “How long can I finance a used car?” You’re not alone. We understand that keeping track of your finances is important, especially when taking your vehicle into account. 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. Take advantage of our payment calculator for more information! 

Financing a Used Car

If you’re trying to figure out how long a loan can last on your used car in Las Cruces, NM, then you’ll need to take a look at what you can afford. That being said some banks limit used car loans to seven years and won’t offer loans on a vehicle with more than 100,000 miles. You will want to check with the lender for any possible restrictions on financing a pre-owned vehicle in El Paso, TX.

Pros & Cons of Short-Term Loans

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. 
• 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. Be sure you can afford a higher monthly payment and that it won’t strain your Las Cruces, NM budget. 

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, and the longer the car loan, the more interest you’ll pay overall.
• 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. 

Finance a Used Car With Rudolph Chevrolet Today

Now that you have all the information you need to make the best decision possible for your next new car purchase, you should take a look at our pre-owned vehicle inventory in El Paso. We’re happy to help all of our Van Horn, TX drivers so be sure to contact us with any questions or help with filling out our online apply for financing form. We can’t wait to see you behind the wheel of your new ride!