Can You Finance a Used Car?

Maybe, like a lot of Hudson drivers, you need to buy a used car, but you also need to limit the size of your monthly payments. Is getting a long term on your car loan a good way to do that? How long can you finance a used car? The average loan term is about 60 to 72 months, though it is possible to go longer than that sometimes. But, how many years can you finance a used car before you end up owing more than what it is worth? Our finance department wants to help you make informed buying decisions. So, we’ve put together the guide below on how to finance a used car.

How Long Can You Finance a Used Car?

So, how long can you finance a used car? That is generally up to the individual lender. But getting a long term loan may not be the cheaper option, in spite of the lower monthly payments. That’s because you will end up paying more in interest over the course of a longer loan. But there is another reason why a very long loan term may not be financially viable for a lot of Saugerties drivers.

How Many Years Can You Finance a Used Car Before You Owe More Than What It’s Worth?

Many drivers don’t take negative equity into account when deciding how long the term of their loan should be. What is negative equity? Negative equity refers to owing more on your car than what it is worth. How many years can you finance a car before that happens? Forty-eight months is considered by many experts to be the ideal length of a car loan in most cases. Of course, that depends on how well your car retains its resale value. 

How to Finance a Used Car the Right Way

The best way to finance a used car is to come into the dealership or lender prepared and informed. What do we mean by that? You can see from the steps below:

How to Finance a Used Car:

1. Check your credit score.
2. Calculate how big of a down payment you can afford to make.
3. Use our online payment calculator to estimate your monthly payments.
4. Do research to find the value of your trade-in.
5. Get pre-approved for financing. 
6. Pick out the used car you want to buy so you’ll have an idea of how much financing you’ll need.
7. Apply to the lender of your choice for your car loan. Our finance department works with multiple lenders to make that part of the process easier for you.

Let the Finance Department at Sawyer Chevrolet, Inc. of Catskill Help

Financing a used car can be a challenge to navigate, but you don’t have to do it alone. We work with multiple lenders to get our customers the best deal. We’ll be happy to do the same for you, as well as walk you through all of your options. And, if you found this guide to be helpful, check out our guide on how to buy a used car. We’re just a short road trip from Windham. So, pay us a visit or drop us a line today!