Can You Finance a Used Car?
Opting for a used vehicle is a viable option for Eatonton and Monticello drivers on a budget, but many still require financial assistance. So, can you finance a used car? Yes, and our experts at Five Star Toyota of Milledgeville will happily guide you through the process. Learn how to finance a used car below, and don’t hesitate to contact us with any questions.
How Long Can You Finance a Used Car?
How many years can you finance a used car at a maximum? There aren’t any official limits to how long you can finance a used car, but different lenders in Gray may set their own restrictions. Some may even have policies that don’t allow buyers to finance used vehicles that have more than 100,000 miles on the odometer or that are more than seven years old.Â
That said, you shouldn’t worry about not being able to find a used car loan length that’s sufficiently long. Five Star Toyota of Milledgeville has relationships with a wide range of Monticello-area lenders, and our experts are here to help you find a lender that can work with your needs!
Short Used Car Loan Term: Pros & Cons
Even if you can finance a car for a longer term, you may want to consider a shorter loan length. As long as you can comfortably pay the amount each month, doing so has significant benefits and can save you money in the long run.
Short-Term Loan Pros
- Less Interest: Interest is added to your monthly payment each 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 Pay-Off: You can enjoy the benefits of ownership—like having no monthly car payment at all—with a shorter loan term.
- 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.
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. It’s always best to select a loan term length with a monthly payment that’s comfortably within your budget. Our payment calculator tool can help you find a loan length and payment that work for you!
Long Used Car Loan Term: Pros & Cons
A longer loan term comes with benefits like a lower monthly payment, while possible drawbacks include paying more in overall interest.
Long-Term Loan ProsÂ
- Lower Monthly Payment: With a longer loan term, you’re spreading the total cost of your vehicle over a longer period of time. That means you’ll pay a smaller monthly amount for the duration of the term.
Long-Term Loan Cons
- Higher Interest: The longer the loan term, the more interest accrues by the end.
- 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.
Apply for Financing at Five Star Toyota of Milledgeville Today
Now that you know how to finance a used car in Milledgeville, it’s time to start thinking about your options. Explore our certified pre-owned inventory and get pre-approved with our secure online application today. If you’re still trying to decide how many years to finance a used car, give us a call at 478-387-3188. Our experts will work with you one-on-one to come up with the best payment plan for your financial situation.