How Long Can You Finance a Used Car in OH?

Blue 2022 Honda HR-V
 

Are you in the market for a gently used car in Monroe and wondering, “How long can I finance a used car?” The average auto loan term for a used car is somewhere between 60 to 72 months, and it keeps going up as car prices increase. There are few restrictions on how long you can finance a car. The length of your auto loan depends primarily on how much you can afford to pay per month, and you can use our payment calculator to estimate your monthly payment. Learn more about financing a used car below, and contact us with any questions.

 

 

Maximum Amount of Time For Financing a Used Car

There’s no absolute limit on the maximum amount of time that you can spend paying off a loan on a used car. Some banks around Cincinnati have a policy against financing vehicles over seven years old, with more than 100,000 miles on their odometers. Check with your preferred lender to ask about restrictions they may impose on financing a used car in the Middletown area.

Pros & Cons of Short-Term Loans

Short-Term Loan Pros:

  • Low-Interest Expenses: In the long run, you’ll pay less interest on a shorter-term auto loan.
  • Faster Pay-Off: Your higher monthly payment will help you repay the loan faster.
  • Refinancing: If you desire (and qualify), you can always refinance your loan later.

Short-Term Loan Cons:

  • Higher Monthly Payment: The shorter the loan term, the higher the monthly payment. Make sure a higher monthly payment works with your Lebanon budget and won’t strain your finances.

Pros & Cons of Long-Term Loans

Long-Term Loan Pros:

  • More Affordable Monthly Payment: When you choose to go with a longer-term auto loan, you’ll get to pay less every month than you would with a short-term loan. Plus, you can always pay higher payments to repay your loan faster.

Long-Term Loan Cons:

  • Higher Interest: Long-term auto loans have higher interest rates, and the longer the loan term, the more interest you’ll pay in the long run.
  • Vehicle Depreciation: Cars depreciate over time, but depreciation rates slow down on most cars as they age. So, the longer the loan length, the more risk you have of getting into a negative equity situation, which is when a car’s value is less than the balance remaining.

Finance Your Next Used Car With Joe Morgan Honda!

Now that we’ve answered the question, “How long can you finance a used car?”, we want to let you know that you can rely on us for all of your auto financing needs! We take all the hassle out of financing a used car with our easy online credit application and trade-in value estimator. We invite you to browse our impressive selection of pre-owned vehicles and Certified Pre-Owned Honda models. Then, let’s go for a test drive! Contact us today!

 

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