Can You Finance a Used Car?

Shopping for reliable used Volkswagens in the North Canton area? Unfamiliar with how long you can finance a used car? The average auto loan term is 60 to 72 months. Keep in mind that there are some restrictions on how many years you can finance a used car, though.

Your car loan length will ultimately depend on how much you can afford to pay month to month. Find out how many years you can finance a used car and more with our Great Lakes Volkswagen of Canton Finance experts below!

How to Finance a Used Car

So, you now know that you can finance a used car in the Akron area. However, you’re probably still wondering how long you can finance a used car. There’s technically no determined limit on the maximum amount of time allotted to repay a car loan.

Nevertheless, you’ll want to keep a few guidelines in mind. Some Alliance banks have a policy on used cars that prevent buyers from financing vehicles that a) have over 100,000 miles on their odometers or b) are over seven years old. You’ll want to contact your preferred lender and ask about their unique restrictions before moving forward with the used vehicle financing process.

Costs & Benefits of Short-Term Loans

Benefits of Short-Term Loans:

• Low-Interest Expenses: You’ll pay less interest over time because you’ll have a shorter loan term and a higher monthly payment.
• Faster Pay-Off: With the higher monthly payment associated with a short-term loan, you’ll be able to pay the loan off faster.
• Refinancing: Assuming your credit score is strong, you may have the option of refinancing your loan later down the road. Generally, it’s easier to do this with a short-term loan, because your car will spend less time being upside down.

Costs of Short-Term Loans:

• Higher Monthly Payment: The higher monthly payment of a short-term auto loan could have a negative impact on your budget. Make sure that you know how to finance a used car and are financially able to meet your monthly payment obligations.

Costs & Benefits of Long-Term Loans

Benefits of Long-Term Loans:

• More Affordable Monthly Payment: A longer loan term allows you to pay less every month for a longer period of time. This will give you some leeway if your financial situation changes at any point.

Costs of Long-Term Loans:

• Higher Interest: Long-term loans come with higher interest rates, since more interest accrues over the length of the loan term.
• Vehicle Depreciation: It’s essential to know how long you can finance a used car. The longer the length of the auto loan, the more time your car will spend as “negative equity.” This is when the car’s cash value is less than the balance of the loan.

Finance Your Used Volkswagen at Great Lakes Volkswagen of Canton!

Now that you have a better understanding of how many years you can finance a used car, you can take the next steps toward becoming the proud owner of a pre-owned Volkswagen car, truck, or SUV. Ready to get the purchasing process started today? Then reach out to us at Great Lakes Volkswagen of Canton!