Can You Finance a Used Car?

Many New Rochelle customers in the market for a vehicle wonder, “Can you finance a used car?” The answer is yes! So, how long can you finance a used car? How many years can you finance a used car? The answer to these questions is a little more complicated. There is no set limit but some Mount Vernon lenders place restrictions on auto loan length.

Some banks limit used car loans to seven years and won’t offer loans on a vehicle with more than 100,000 miles. Be sure to talk to your lender to see what limits and lengths you’re working with. Our Bronx team will help you figure out how to finance a used car at Victory Mitsubishi!

How Long Can You Finance a Used Car?

Are you a New Rochelle driver in the market for a car and you’re trying to determine what your budget looks like? Not sure how long you can finance a used car? 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. The length of your auto loan depends on what you can afford to pay each month. So be sure to use our payment calculator to help determine what your used car budget looks like.

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 Westchester 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 Victory Mitsubishi Today

We know that financing a car can seem like a complicated process, but our Victory Mitsubishi team is here to help you every step of the way. When you’re ready, be sure to give us a call and we’ll get you connected with a member of our finance center team to get started. We look forward to working with you!