Can You Finance a Used Car?

So, it’s time to move on to your next car, but your budget is telling you to get a used car for your Traverse City commute instead of a new one, and you’re thinking you’ll need to get a longer loan so that you can have comparatively smaller payments. How long can you finance a used car? The average loan term is about 60 to 72 months — but can you go longer than that, and should you? How many years can you finance a used car without going underwater on your loan? Our finance department wants our Traverse City customers to make informed buying decisions. So, we’ve put together the guide below on how to finance a used car.

How Many Years Can You Finance a Used Car?

So, how many years can you finance a used car? Each lender decides how long they’re willing to finance a vehicle. However, some Cadillac drivers have decided that opting for a longer loan is not necessarily a better deal. Why? One reason is that you will end up paying more in interest over the course of a longer loan. But there is another reason why a very long loan term may not be financially viable.

How Long Can You Finance a Used Car Without Going Upside Down on the Loan?

Taking a long-term loan can be risky. Why? Because the longer your loan, the greater chance there is that you’ll get to a point where you owe more on the car than it is worth. So, how long can you finance a used car without becoming upside down on the loan? Forty-eight months is considered by many experts to be the ideal length of a car loan in most cases. Of course, that depends on how well your car retains its resale value. We encourage Manistee drivers to take that into consideration before deciding on how long their loan should be.

How to Finance a Used Car the Smart Way

Now that you know how long you can finance a used car, follow the steps below in order to get the best deal.

How to Finance a Used Car

1. Check your credit score.
2. Calculate how big of a down payment you can afford to make.
3. Use our online payment calculator to estimate your monthly payments.
4. Do research to find the value of your trade-in.
5. Get pre-approved for financing. We have an online tool for that.
6. Pick out the used car you want to buy so you’ll have an idea of how much financing you’ll need.
7. Apply to the lender of your choice for your car loan. Our finance department works with multiple lenders to make that part of the process easier for you.

Talk to the Finance Department at Serra Toyota of Traverse City About Your Options

We’ll be happy to walk you through all the ins and outs of financing a car. So sit down with our finance managers. And, if you found this guide to be helpful, check out our guide on how to get financing with bad credit. We’re just a short road trip from Glen Arbor. So, pay us a visit or drop us a line today!