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How Long Can You Finance a Used Car?

Signing Finance Documents for Car

Are you shopping around Ooltewah for used cars? One of the questions you may have is, “How long can I finance a used car?” According to the statistics, the average loan-term when financing a used car is between 60 and 72 months. Take a moment to learn about the differences between short-term and long-term loans, so you decide which option is best for you. Then, apply for financing and contact Mtn. View Chevrolet to schedule some test drives in Chattanooga!



Long- vs. Short-Term Loans: Pros & Cons

So, how long can you finance a used car? As we mentioned earlier, the average loan term for Dalton drivers is between 60 and 72 months. However, when financing a used car, some banks put a 7-year cap on loan term length. Also bear in mind that it may be difficult to find a loan on a vehicle with over 100,000 miles on the odometer. With that out of the way, let’s take a moment to compare the perks of a short-term loan to the perks of a long-term loan:

Pros & Cons of Short-Term Loans


  • Less Interest: If your loan term is shorter, there will not be as much interest overall compared to a longer loan. What’s more, by opting for a short-term loan, you may be able to barter for a lower interest rate.
  • Faster Buyout: You’ll pay your loan off much more quickly.


  • Higher Monthly Payment: Your monthly payments reflect the sum of the principal of your loan and interest divided by the number of months for your loan term. A shorter loan term is going to mean higher monthly payments.

Pros & Cons of Long-Term Loans


  • Lower Monthly Payment: With a long-term loan, you’re dividing the total loan by a greater number of months, meaning that you’ll make much lower payments each month.


  • More Interest: You pay interest each month on your loan as a lending fee. If your loan is longer, you’re going to pay more interest over the course of your loan term.
  • More Depreciation: As cars age, they lose value. If you plan on selling your car, but you have a long loan term length, you’re at a greater risk for developing negative equity. Negative equity is when you owe more on your car loan than it is worth in the marketplace. This could put you in a position where you’re still paying off a portion of the car loan, even after selling your vehicle.

Discuss Financing a Used Car Near Athens

You know how long you can finance a used car for, but the real answer to the question, “How long can I finance a used car?” is to determine with loan length is right for your needs. If you have more questions about the pros & cons of financing a used car with a long- or short-term loan, call Mtn. View Chevrolet at (423) 763-7946. We can answer any of your questions and help you navigate the rest of the steps of used car shopping. And while you’re here, take a moment to explore our guide on how to trade in a financed car, as well as our overview of the benefits of buying used.


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