Can You Finance a Used Car?

You’re in luck! On top of the savings found across our used car inventory, you can make the model you love more affordable by financing it. Similar to new car financing, you can simply apply for a loan and choose the terms that are favorable for you. So, how long can you finance a used car? Most used car loan terms range from 60 to 72 months. 

When considering the best loan option, Carson buyers should consider loan terms, interest rates, and any specific requirements that come with certain financers. Learn more about how you can finance a used car with Nissan of Torrance below.

Restrictions with Used Car Financing

How many years you can finance a used car depends on the lender. While there isn’t an official limit, many lenders have restrictions on term length as well as mileage. Some policies restrict financing on used vehicles with over 100,000 miles on the odometer or on models that are over seven years old. 

If you’re concerned about how long you can finance a used car, our team at Nissan of Torrance has a relationship with many lenders in the Carson area. Our experts can work with you to find a lender that fits your needs. 

Pros & Cons of Short-Term Used Car Loans

When you’re considering how to finance a used car, you have the option of a short-term or long-term loan. If you can comfortably afford the expedited schedule of a short-term loan, it can save you money in the long run and well as offer these benefits:

Short-Term Loan Pros

• Less Interest: The quicker you pay off the car loan, the less interest is added to your monthly payment each month. If you’re able to, a shorter loan allows you to pay less over time compared to a long term length.
• Faster Pay-Off: With a shorter loan term, you can get your monthly payments out of the way and enjoy the benefits of ownership. It’s as simple as that! 
• Easier Refinancing: If you need to refinance your car loan, you’ll have spent less time with negative equity thanks to the short loan term. 

Short-Term Loan Cons

• Higher Monthly Payment: Short-term loans come with a higher monthly payment because you’re splitting the total cost across fewer months. Our payment calculator tool can help you find the term length and monthly payment option that you can comfortably handle within your budget. 

Pros & Cons of Long-Term Used Car Loans

You can finance a used car for a longer period of time for a lower monthly payment, but it can come with drawbacks like a higher overall interest. 

Long-Term Loan Pros 

• Lower Monthly Payment: A longer loan term takes some of the stress away from your budget. This loan option allows you to pay smaller monthly payments over the duration of the term.

Long-Term Loan Cons

• Higher Interest: Interest is added to each monthly payment. The more time you spend paying off the vehicle, the more interest accrues.
• Vehicle Depreciation: New and used cars will naturally depreciate during your Compton commutes. With a long-term loan, it will have lost more value by the term’s end if you’re planning on selling the vehicle. 

Explore Your Financing Options with Nissan of Torrance! 

Ready to finance a used car? After deciding how to finance a used car you have your eye on, it’s important to think about whether you can pay off your loan early. If you have any questions about financing options, don’t hesitate to contact our finance team at Nissan of Torrance.