Can You Finance A Pre-Owned Car?

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Yes, you can make a pre-owned car even more affordable by financing it. Just like you can with a new vehicle, you can easily apply for a loan to finance a pre-owned car. How long can you finance a pre-owned vehicle? Most pre-owned car loan terms range from 60 to 72 months, giving you plenty of flexibility.

 

Of course, there are several points that Frankfort buyers should keep in mind. First, the longer the loan term, the more interest will be owed overall. Also, some banks restrict pre-owned car financing to vehicles that meet specific criteria. Join our Lincoln of Lafayette finance team as we cover everything you should know about how to finance a pre-owned car confidently.

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Pre-Owned Car Financing Restrictions

How many years can you finance a pre-owned car at a maximum? There aren't any official limits when it comes to the length of your pre-owned car loan term, but different lenders may set their own restrictions. Some may even have policies that don't allow buyers to finance pre-owned vehicles that have more than 100,000 miles on the odometer or that are more than seven years old. 

 

That said, you shouldn't worry about not being able to find a pre-owned car loan length that's sufficiently long. Lincoln of Lafayette has relationships with a wide range of Frankfort-area lenders, and our experts are here to help you find a lender that can work with your needs.

Short Pre-Owned Car Loan Term: Pros & Cons

Even if you can finance a car for a longer term, consider a shorter loan length. As long as you can comfortably pay the amount each month, doing so has significant benefits and can save you money in the long run:

Short-Term Loan Pros

  • Less Interest: Interest is added to your monthly payment each month. If you pay off your loan sooner, you'll pay less interest over a shorter loan term compared to a longer one.
  • Faster Pay-Off: Enjoy the benefits of ownership, including no monthly car payment, with a shorter loan term.
  • Easier Refinancing: Refinancing your car loan is easier with a short loan term, as you'll have spent less time with negative equity.

Short-Term Loan Cons

  • Higher Monthly Payment: By splitting your total cost into fewer monthly payments, you'll pay a higher amount each month. It's always best to select a loan term length with a monthly payment that's comfortably within your budget.

Long Pre-Owned Car Loan Term: Pros & Cons

A longer loan term comes with benefits like a lower monthly payment, while possible drawbacks include paying more in overall interest:

Long-Term Loan Pros 

  • Lower Monthly Payment: With a longer loan term, you're spreading the total cost of your vehicle over a longer period of time. That means you'll pay a smaller monthly amount for the duration of the term.

Long-Term Loan Cons

  • Higher Interest: The longer the loan term, the more interest accrues by the end.
  • Vehicle Depreciation: Whether new or pre-owned, all cars depreciate over time. If you plan to sell your vehicle at the end of your loan term, be aware that it will have lost more value by the end of a longer loan term than a shorter term.

Finance Pre-Owned Vehicles In West Lafayette

Lincoln of Lafayette is proud to provide drivers throughout the greater Frankfort area with high-quality pre-owned cars. Feel free to reach out if you have any questions about financing a pre-owned vehicle with us. Our staff is here to help.