How Long Can You Finance a Used Car?

Dealership Finance Professional signing documents


On average, an auto loan term is about 60 to 72 months, and it’s expected to keep increasing as car prices increase. The length of your car loan will heavily depend on how much you can afford to pay every month. But what if you’re planning to get a new-to-you vehicle? How long can you finance a used car? Learn more about the maximum length to finance a car, as well as the pros and cons of longer and shorter loan terms, below! The finance team at ClickIt RV Liquidation Center knows the ins and outs of used car financing as we are a prominent used car dealer in WA.

What is the Maximum Amount of Time to Repay a Car Loan?

While there’s no set limit on the maximum amount of time to repay a car loan, there are a few guidelines that banks follow. Some banks have a policy on used cars that prevents buyers from financing vehicles over seven years old and with over 100,000 miles on their odometers. You can always contact your preferred lender near Spokane and ask about their restrictions on used car financing before taking the next step.

What are the Pros & Cons of Short-Term Loans?

Short-Term Loan Pros:

  • Low-Interest Expenses: You’ll pay less interest over time because you’ll have a shorter loan term and a higher monthly payment in the Spokane Valley area.
  • Faster Pay-Off: Again, the higher monthly payment will help you in paying the loan off faster.
  • Refinancing: If you choose, you can refinance your loan later (assuming your credit score is strong). Generally, it’s easier to do this with a short-term loan since your car will spend less time being upside down.

Short-Term Loan Cons:

  • Higher Monthly Payment: Short-term auto loans come with a higher monthly payment than long-term auto loans. Make sure your budget is flexible enough for higher monthly payment and ensure that you’ll be able to make the payments on time consistently, so that you don’t hurt your credit score!

What Are the Pros & Cons of Long-Term Loans?

Long-Term Loan Pros:

  • More Affordable Monthly Payment: When you choose a longer loan term, you’re paying less every month for a longer period of time. If your financial situation changes at any point, you’ll have some leeway. This is a safe option for many drivers as unexpected scenarios may happen during the term that requires a huge expense.

Long-Term Loan Cons:

  • Higher Interest: Long-term loans come with higher interest rates. In other words, the longer the loan term, the more interest accrues.
  • Vehicle Depreciation: Cars depreciate over time, although depreciation rates do slow down as a car gets older. With that being said, the longer the length of the auto loan, the more time your car will spend as “negative equity.” This is when the car’s cash value is less than the balance of the loan.

Finance Your New-To-You Car at ClickIt RV Liquidation Center!

At ClickIt RV Liquidation Center, we have in-house used car financing options that are hassle-free and stress-free for Coeur d'Alene, ID drivers. Come and partner up with us in the Spokane area and we’ll help you secure a favorable plan! Thinking about getting an RV? See how long you can finance one here!


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