How Long Can You Finance a Used Car?

Ultimately, dealerships want to see you in a car that fits your style and needs around Mamaroneck. So, when you ask questions like, “How long can I finance a used car?” and “What are my used BMW finance options?” BMW of Mamaroneck is here to help. How long you can finance a used car depends on how much you can afford to pay on a monthly basis. The average auto loan term is about 60 to 72 months, however, it’s expected to change as car prices increase. Learn more about your financing options below, and contact our finance center at BMW of Mamaroneck to explore your used BMW finance options. 

Maximum Repayment Terms on a Car Loan

While there are no exact limits to how long you can finance a used car, however, there are loose loan terms that some banks have in place. For example, some banks have a policy that prevents buyers from financing used vehicles over seven years old and with over 100,000 miles on their odometers. If you’re looking for extended loan terms on used cars around Harrison, your best bet is to contact your lender and discuss their restrictions on used car financing. 

It’s worth weighing the pros and cons of the term lengths when wondering, “How long can I finance a used car?” Learn more below

Pros and Cons of Short-Term Loans

Short-Term Loan Pros:

• Low-Interest Expenses: The quicker you pay off your car loan, the less you have to pay in interest over time as you have a shorter loan term with a higher monthly payment. 
• Faster Pay-Off: If you have larger expenses planned in the future, a short-term loan with higher monthly payments allows you to pay off the loan faster.
• Refinancing: Assuming your credit score is strong, refinancing with a short-term loan allows you to spend less time being upside down on your loan. 

Short-Term Loan Cons: 

• Higher Monthly Payment: Really consider your budget before taking a short-term loan. A higher monthly payment can impact your financial freedom when other bills and emergency financial situations occur. 

Pros & Cons of Long-Term Loans

Long-Term Loan Pros: 

• More Affordable Monthly Payment: Long-term loans allow you to put less strain on your budget. When you’re paying less on your car loan every month, there’s less stress in financial emergencies. 

Long-Term Loan Cons: 

• Higher Interest: The longer the loan, the more interest you end up paying overtime. It’s worth considering a longer loan term that doesn’t leave you with higher interest at the end of the term. 
• Vehicle Depreciation: You’ve likely heard how quickly a new car depreciates once off a New Rochelle-area lot. While depreciation rates do slow down as the car gets older, a longer-term length allows your car to spend more time as “negative equity.” This means the car has a cash value that is less than the balance of the loan. 

Finance a Used BMW with BMW of Mamaroneck!

If you’re interested in your used BMW finance options, easily apply for financing online at BMW of Mamaroneck and contact us to discuss “How long can I finance a used car?” To find the right car for you, learn about the difference between used and certified pre-owned cars, and be sure to browse our inventory of pre-owned vehicles today!