How Long Can You Finance A Used Car?

Are you looking into purchasing a new vehicle but don't want to commit to the price or terms of a brand-new model? If you answered yes - don't worry - it's a common question that most car buyers have before deciding on the model they want. Well, how long can you finance a used car? The financing process works the same whether you purchase new or used; there are just a few differences you should be aware of. The total length rests on how much you can afford to dedicate each month to your loan payment. Our finance department is more than happy to help guide you during your used car buying experience.


How Long Can I Finance a Used Car at Gerald Ford?
At Gerald Ford, there's no limit for North Aurora drivers regarding the length of a used car loan. However, most lenders do have some type of cap in place restricting the type of vehicle and length of the finance term. Most North Aurora banks and credit unions consider the age of the car and the total mileage. For example - one of the most common rules is the vehicle must be seven years old or less and have no more than 100,000 miles. That said - that's not a blanket rule for the industry, and it never hurts to try if you have something different in mind.

Pros & Cons of Short-Term Loans

Short-Term Loan Pros:

  • Low-Interest: A shorter loan equals lower interest rates, saving you money on the back end.
  • Quicker Pay-Off Date: Your increased monthly payment ultimately means you pay the car off much faster.
  • Refinancing: As long as you qualify, refinancing the vehicle is always an option in the future.

Short-Term Loan Cons:

  • Higher Monthly Payment: When your loan terms are shorter, it means you have a smaller window of opportunity to pay the vehicle off. This increases your monthly payments.

Pros & Cons of Long-Term Loans

Long-Term Loan Pros:

  • Decreased Monthly Payment: A long-term loan divides your payments up over an extended period, leading to lower monthly payments that might be more affordable.
    Long-Term Loan Cons:
  • Increased Interest: While you save money on the front end, a long-term loan costs more on the back end because of more interest.
  • Depreciation: Cars depreciate, with the majority of the lost value taking place during the first five years. The devaluation slows after that, but it's still possible to end up with negative equity toward the end of your loan term.

Fair Loan Terms at Gerald Ford
How long can you finance a used car at Gerald Ford? Come see us in person and find out. We'll get your information sent over to our network of lenders to maximize your odds of receiving loan terms you can handle. For more information, contact us at (630) 447-0394.