Can You Finance a Used Car?ƒ

Yes, you absolutely can! A used auto loan can put a used car, no matter the price, in your garage if you qualify for the loan. Just like you can with a new vehicle, you can apply for financing to get a loan ahead of buying a used car. Find out more with our guide from the finance team at Land Rover Manhattan.

How Long Can You Finance a Used Car?

Wondering how many years can you finance a used car? Most used car loans give you 60 to 72 months to pay them off (five to six years), so you can find a loan term that fits your needs.

There are several points that Fort Lee shoppers need to know when financing a used car.

1. The longer the loan term, the more interest you will pay. 
2. Some banks restrict used car financing to vehicles that meet specific requirements.
3. Loan companies may require full coverage insurance instead of the minimum amount of insurance your state requires. This is because the lender wants to protect their investment.

How to Finance a Used Car: Restrictions

How many years can you finance a used car at most? There are no official limits because the term of the loan is up to individual lenders. Car dealers can help you negotiate with lenders to find a loan length that’s best for you. Auto lending companies may also have mileage restrictions, such as not financing used vehicles with more than 100,000 miles on the odometer. Others have model year restrictions, like they’ll only finance cars less than seven years old. You might consider a certified pre-owned vehicle at that point. Certified pre-owned vehicles have stricter standards than regular used cars in terms of the mileage and year, meaning they are in much better condition than ordinary used cars.

You won’t need to worry about obtaining financing for a great used vehicle. The finance center at Land Rover Manhattan has relationships with various Englewood-area lenders. Our experts can help you find a lender that will work with you!

Short-Term Used Car Loan: Pros & Cons

Can you finance a used car over just a few years? Yes, but you’ll need to weigh the benefits versus the detriments.

Even if you can finance a car for a longer term, you may want to consider a shorter loan length because you’ll own the car faster and pay less interest. As long as you can comfortably pay the amount each month, a short-term loan has many financial benefits.

Short-Term Loan Pros

• Less Interest: Interest is added to your payment every month. If you’re paying your loan for a shorter time, you’ll pay less in interest.
• Faster Payoff: You can enjoy the benefits of ownership, like having no monthly car payment at all after just a few years, thanks to a shorter loan term. It will make selling the vehicle easier once the loan is paid off.
• Easier Refinancing: It’s easier to refinance your car loan if you have a short loan term since you’ll have spent less time with negative equity. Because your loan is a shorter term, you may not need to refinance it at all by the time you pay it in full. 

Short-Term Loan Cons

• Higher Monthly Payment: Because your total cost goes into fewer monthly payments, you’ll be paying a higher amount each month. You should always select a loan term length with a monthly payment that you can pay off comfortably within your budget. Our finance team can help you find a loan length and payment that works for you and your situation! We want you to afford a quality used vehicle.

Long-Term Used Car Loan: Pros & Cons

Can you finance a used car for longer periods of time? Absolutely, but you must understand the possible pitfalls. A longer loan term comes with benefits like a lower monthly payment, while possible drawbacks include paying more in overall interest to the lender.

Long-Term Auto Loan Pros 

• Lower Monthly Payment: With a longer loan term, you’re spreading the total cost of your vehicle over a longer time. That means you’ll pay a smaller monthly amount for the duration of the term, which can be up to six years or even longer! A shorter loan term is easier on your monthly finances.

Long-Term Auto Loan Cons

• Higher Interest: The longer the loan term, the more interest accrues by the end of your loan. You’ll pay more money to finance the vehicle because you’re borrowing the money for a longer period.
• Vehicle Depreciation: Whether new or used, all cars depreciate over time because the engine and parts get older after more driving. If you plan to sell your car at the end of your loan term, be aware that it will have lost more value by the end of a longer loan term than a shorter term. Selling your car is easier with a shorter-term loan.
• You may still owe money if it’s totaled. While this is an uncommon situation, if your vehicle is totaled before it’s paid off, you’ll still have to pay the remaining balance even if you’re not driving the vehicle anymore. The insurance payment may not cover the entirety of the loan balance if your vehicle has depreciated. You’ll still have to pay off whatever is left on the loan balance.

How to Finance a Used Car at Land Rover Manhattan

We’d love to help you finance a used car! Land Rover Manhattan is the The Bronx area’s go-to dealership for high-quality used cars and used car financing. Check out our pre-owned vehicle specials to see how much money you could save. Feel free to contact us or call 332-877-9340 to talk to our experts or schedule a test drive! Until your test drive, look over our car-buying tips to purchase a used car like a pro!