How to Finance a Used Car

Do you need to purchase a used car? If so, did you know you can make a used car even more affordable when you finance it with Serra Volvo Cars of Traverse City? That’s right; you can finance a used car just like with a new one. How long can you finance a used car? Most used car loan terms are between 60 to 72 months, but the longer the loan term, the more interest you will pay in the long run. Also, some banks restrict used car financing to certain vehicles meeting specific requirements. Learn how to finance a used car and get all the details in this guide from the team at Serra Volvo Cars of Traverse City.

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Used Car Financing Restrictions

How many years can you finance a used car? There aren’t any limits regarding the length of a loan for a pre-owned vehicle, but some lenders set their own internal restrictions. Some won’t allow buyers to finance used cars with over 100,000 miles or over seven years old. The good news is that we at Serra Volvo Cars of Traverse City have relationships with many Garfield Township lenders, and our finance experts will help you find a lender that works for your needs!

Short Used Car Loan Term: Pros & Cons

Even if you can finance a vehicle for a longer term, it may not always be your best decision. If you can comfortably pay more each month, you should because it will save you money in the long run. These are the pros and cons of short-term used car loans.

Short-Term Loan Pros

• Less Interest: If you’re paying your loan for a shorter time, you’ll pay less in interest over the course of the loan term.
• Faster Pay-Off: You will eventually enjoy the benefits of ownership-like having no monthly car payment once it’s paid off.
• Easier Refinancing: It’s easier to refinance your car loan with a short because it’s less likely that you’ll have negative equity.

Short-Term Loan Cons

• Higher Monthly Payment: Because you’re paying off your loan faster, you’ll have to pay more each month. Always select a loan term length with a monthly payment within your budget. Our payment calculator tool can help you estimate a loan length and payment that will work for you!

Long Used Car Loan Term: Pros & Cons

Now that we’ve answered the question, “Can you finance a used car in Interlochen?” here are the pros and cons of a longer used car loan.

Long-Term Loan Pros 

• Lower Monthly Payment: With a longer loan term, you’ll have a more affordable monthly payment. 

Long-Term Loan Cons

• Higher Interest: The longer your loan term, the more interest you’ll pay.
• Vehicle Depreciation: With few exceptions, vehicles depreciate over time. If you plan to sell your car at the end of your loan, realize that it will have lost more value by the end of a longer loan term loan than with a shorter-term loan.

Learn More About Used Car Financing with Serra Volvo Cars of Traverse City

Serra Volvo Cars of Traverse City is known for taking the hassle out of used car shopping around Kalkaska. Now that you understand how to finance a used car, we invite you to check out our current used vehicle specials to see why we are known for offering the best deals in the Traverse City area! You can apply for financing online, so why not start your application now?