Can You Finance a Used Car?

For those considering a used vehicle for their next car around Fairmont, you might be debating whether to lease or finance it. Many buyers around Morgantown will often send us questions including “How long can you finance a used car?” and “How many years can you finance a used car?” among others.

Well to put it bluntly, yes, you can finance a used car much in the same manner as a newer vehicle. At the same time, most used car loans can range from 60-72 months in general. However, there are several things you should keep in the back of your mind:

• The longer your loan term, the more interest will be owed.
• Some banks and lending institutions may limit their used car financing to specific models.

Yet that’s only a sample of this topic, so perhaps a guide is more helpful. Learn more below on how to finance a used car and other related subjects.

How Long Can You Finance a Used Car?

So how many years can you finance a used car in general? To be honest, there aren’t any maximum limits or restrictions on how long a used car loan term can last. Many financial lenders and banks will set their own rules and guidelines when it comes to the loan terms. For instance, if a pre-owned vehicle has more than 100,000 miles and is older than 8 years, they may not finance the loan.

In general, you shouldn’t be too worried about finding a used car loan term that’s out of proportion. Dan Cava's GMC has maintained relationships with multiple financial lenders in Bridgeport and Fairmont lenders, all of whom are geared towards your budget and needs.

Short Used Car Loan Term: Pros & Cons

When asking how to finance a used car, you’re going to ask about loan terms and how long they will last. Some Fairmont buyers might prefer a short term in general. This can bring multiple benefits:

Short-Term Loan Pros

• Less Interest: Each month, interest will be added to your monthly payment. For those paying a loan for less time, they’ll pay less in interest on a shorter-term loan than a longer one.
• Quicker Pay-Off: You’ll be able to enjoy the benefits of car ownership faster, such as no monthly car payment at all.
• Easier Refinancing: You’ll have an easier time refinancing your car loan if you have a shorter loan term, as you’ve spent far less time with negative equity.

Short-Term Loan Cons

• Higher Monthly Payment: As you’re splitting your total cost into less monthly payments, you’re going to pay more per month. This means, it’s ideal to find a loan term length that’s within your planned budget. You should use our payment calculator tool to determine a lean length and payment that’s ideal for you.

Long Used Car Loan Term: Pros & Cons

So as we summarize “Can you finance a used car,” we move from short-term used car loans to the longer-term options:

Long-Term Loan Pros

• Lower Monthly Payment: When you have a longer loan term, the cost of the vehicle is broken down over a longer time period. This means smaller payments every month while you have this loan.

Long-Term Loan Cons

• Higher Interest Rate: The longer the loan term is, the more interest will accrue by its conclusion.
• Vehicle Depreciation: Whether it’s a used or newer car, you’re going to have deprecation. For those planning to sell their car at the end of a longer-term loan, remember it will have lost more value in this form than a short-term used car loan.

Learn More About Used Car Financing at Dan Cava's GMC

Now that you have your answer to can you finance a used car, why not check out the used car inventory at Dan Cava's GMC. We also have an entire section of certified pre-owned vehicles for those considering a “like new” GMC option. Whether it’s finding the ideal used car, or learning how to bleed brakes, Dan Cava's GMC is the place to go. See you shortly!