Can You Finance a Used Car?

Are you wondering if you can finance a used car, and if so, for how long? Then you’re in luck! The answer would be yes, you can finance a used car just like any of the new ones you see on the market. As for how long you can finance a used car, most used car loan terms range from 60 to 72 months.

While financing a used car may be the most affordable option if you’re working on a budget, there are a few additional details you want to keep in mind. Take a look below to see if financing a used car is the right choice for you and your Minneapolis drives. And be sure to contact us if you have any questions or concerns.

Used Car Financing Restrictions

How many years can you finance a used car at a maximum? There aren’t any official limits when it comes to the length of your used car loan term, but different lenders 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. 

That said, you shouldn’t worry about not being able to find a used car loan length that’s sufficiently long. Morrie's 394 Hyundai has relationships with a wide range of Minnetonka-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 lean length and payment that works for you!

Long Used Car Loan Term: Pros & Cons

Can you finance a used car and how long can you finance a used car? A longer loan term comes with benefits like a lower monthly payment, while possible drawbacks include paying more in overall interest.

Long-Term Loan Pros 

• 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.

Learn More About Used Car Financing at Morrie's 394 Hyundai

If you’re a Richfield driver working on a budget and looking for a quality pre-owned vehicle, then you’ve come to the right place. We have plenty of options for you to choose from in our certified pre-owned and priced under $20K inventories. Be sure to reach out to our St. Louis Park team if you have any questions, otherwise, feel free to apply for financing to get a jumpstart on the purchase process for this next new-to-you car.