Can You Finance A Used Car?

Absolutely! You can make a used car, no matter what the price, more affordable by financing it with an auto loan! Just like you can with a new vehicle, you can apply for financing to get a loan for buying a used car.Find out more with our guide from the finance team at BMW of Turnersville.

How Long Can You Finance a Used Car?

Wondering how many years can you finance a used car? Most used car loans give you 60 to 72 months to pay them off (five to six years).

There are several points that Philadelphia shoppers should keep in mind.

1. The longer the loan term, the more interest you will pay.
2. Some banks restrict used car financing to vehicles that meet specific requirements.
3. Loan companies may require full coverage insurance instead of the minimum amount of insurance your state requires.

How to Finance a Used Car: Restrictions

How many years can you finance a used car at a maximum? There are no official limits because they are up to individual lenders. Auto lending companies may also have mileage restrictions, such as not financing used vehicles with more than 100,000 miles on the odometer. Others have model year restrictions as they’ll only finance cars less than seven years old.

You won’t need to worry about obtaining financing for your dream vehicle. The finance center at BMW of Turnersville has relationships with a wide range of Sewell-area lenders and beyond and our experts are here to help you find a lender that can work with your needs!

Short-Term Used Car Loan: Pros & Cons

Can you finance a used car over just a few years? Yes, but you’ll need to weigh the benefits versus the detriments.

Even if you can finance a car for a longer term, you may want to consider a shorter loan length. As long as you can comfortably pay the amount each month, a short-term loan has many financial benefits.

Short-Term Loan Pros

• Less Interest: Interest is added to your monthly payment every month. If you’re paying your loan for less time, you’ll pay less in interest over the course of a shorter loan term than a longer loan term.
• Faster Payoff: You can enjoy the benefits of ownership, like having no monthly car payment at all after just a few years, thanks to a shorter loan term.
• Easier Refinancing: It’s easier to refinance your car loan if you have a short loan term since you’ll have spent less time with negative equity. Because your loan is a shorter term, you may not need to refinance it at all.

Short-Term Loan Cons

• Higher Monthly Payment: Because you’re splitting your total cost into fewer monthly payments, you’ll be paying a higher amount each month. You should always select a loan term length with a monthly payment that you can pay off comfortably within your budget. Our finance team can help you find a loan length and payment that works for you!

Long-Term Used Car Loan: Pros & Cons

Can you finance a used car for longer periods of time? Absolutely, but you must understand the possible pitfalls of this process. A longer loan term comes with benefits like a lower monthly payment, while possible drawbacks include paying more in overall interest.

Long-Term Auto 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, which can be up to six years!

Long-Term Auto Loan Cons

• Higher Interest: The longer the loan term, the more interest accrues by the end. You’ll pay more money to finance the vehicle because you’re borrowing the money for a longer time period.
• Vehicle Depreciation: Whether new or used, all cars depreciate over time. If you plan to sell your car 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.
• You may still owe money if it’s totaled. While this isn’t a common situation, if your vehicle is totaled before it’s paid off, you’ll still have to pay the remaining balance even if you’re not driving the vehicle anymore. If the insurance payment won’t cover the entirety of the loan balance because your vehicle has depreciated, you’ll still have to pay it off.

How to Finance a Used Car at BMW of Turnersville

We’d love to help you finance a used car! BMW of Turnersville is the Williamstown area’s go-to dealership for high-quality used cars and used car financing. Check out our current used vehicle specials. Feel free to contact us or call (856) 290-8178 to talk to our experts or schedule a test drive in Turnersville! We’re here to help in any way we can.