Can You Finance a Used Car?

Certainly! Making a used car more budget-friendly through financing is indeed possible. Just as you would with a new car, you have the option to apply for a loan to finance a used vehicle. If you’re aiming for the lowest monthly car payment, you’re likely wondering about how long can you finance a used car. Generally, used car loan terms range from 60 to 72 months.

For Pasadena buyers, there are important considerations to bear in mind. The longer the loan term, the higher the accumulated interest over time. Moreover, some banks impose specific criteria for used car financing. Are you ready to begin? This comprehensive guide from the Subaru of Glendale finance team gets into the intricacies of how to finance a used car.

How to Finance a Used Car: Restrictions

How many years can you finance a used car? Officially, there’s no set limit for the length of a used car loan term, but different lenders may establish their own restrictions. Some might even have policies that restrict financing for used vehicles with over 100,000 miles on the odometer or those older than seven years.

Nonetheless, fret not about finding a suitable used car loan term. Subaru of Glendale boasts strong relationships with a wide array of lenders in the Los Angeles region. Our experts are primed to assist you in locating a lender that aligns with your requirements.

How to Finance a Used Car: Short Used Car Loan Term

Even if you have the option to opt for a longer financing term, it’s worth considering a shorter loan length. As long as you can comfortably manage the monthly payment, there are significant advantages that can lead to long-term savings. 

Short-Term Loan Benefits: 

• Reduced Interest: With each passing month, interest accrues on your monthly payment. Opting for a shorter loan term results in less interest paid over the course of the loan compared to a longer term. 
• Faster Loan Repayment: A shorter loan term offers quicker ownership benefits, such as being free from a monthly car payment sooner. 
• Easier Refinancing: Having a shorter loan term makes refinancing your car loan more feasible, as you’ll spend less time dealing with negative equity. 

Short-Term Loan Drawbacks: 

• Higher Monthly Payment: Due to the fewer monthly payments in a shorter term, your monthly payment will be higher. It’s always wise to select a loan term with a monthly payment that comfortably fits within your budget. Our payment calculator tool is at your disposal to help pinpoint the ideal term and payment for you.

How to Finance a Used Car: Long Used Car Loan Term

Financing a used car with a longer loan term yields advantages like a lower monthly payment, yet it’s essential to be aware of potential drawbacks like higher overall interest. 

Long-Term Loan Benefits: 

• Lower Monthly Payment: Extending the loan term distributes the total vehicle cost across a longer span, leading to smaller monthly payments throughout the term. 

Drawbacks of Long-Term Loans: 

• Higher Interest: Prolonged loan terms incur more interest by the end of the term. 
• Vehicle Depreciation: All cars, new or used, experience depreciation over time. If your plan involves selling the car at the end of the loan term, note that it will have depreciated more over a longer term than a shorter one.

How Long Can You Finance a Used Car? Learn More at Subaru of Glendale!

As the preferred North Hollywood destination for affordable used cars, Subaru of Glendale is your premier choice. Explore our ongoing specials on used vehicles and don’t hesitate to reach out for further assistance regarding financing a used car with us. We’re committed to providing you with all the necessary support!