Can You Finance A Used Car?

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Absolutely! You can put a used car, no matter the price, in your garage by financing it with an auto 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 Exceptional Motorcar.



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 financial needs.

There are several points that Lima shoppers should keep in mind 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 their investment in your monthly payments to follow the entire term of the loan.

How to Finance a Used Car: Restrictions

How many years can you finance a used car at most? There are no official limits because they are up to individual lenders. Car dealers can help you negotiate with lenders to find a loan 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 engine. 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 because they have stricter standards than regular used cars.

You won’t need to worry about obtaining financing for your dream vehicle. The finance center at Exceptional Motorcar has relationships with a wide range of Toledo-area lenders, and our experts are here to help you find a lender that will work with you to finance a great used car!

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. 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 less time, you’ll pay less in interest over the course of a shorter loan term than a longer loan term.
  • 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 you’re splitting your total cost 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!

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 with this process. A longer loan term comes with benefits like a lower monthly payment, while possible drawbacks include paying more in overall interest.

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!

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. 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 isn’t a common 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. If the insurance payment won’t cover the entirety of the loan balance because your vehicle has depreciated, you’ll still have to pay it off.

How to Finance a Used Car at Exceptional Motorcar

We’d love to help you finance a used car! Exceptional Motorcar is the Findlay 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 (419) 785-8369 to talk to our experts or schedule a test drive! We’re happy to help in any way we can.


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