How Long Can You Finance a Used Car?

Dealership Finance Professional signing documents

You’ve found an impressive pre-owned vehicle in our inventory for your Chandler commute and you’re ready to apply for financing. But, before you do so, you might be curious about your monthly car payment and how your financing terms can affect that. If you’ve used our monthly payment calculator from the comfort of your own Queen Creek home, you should have an estimate of what your monthly car payment may be. However, you may have noticed that the longer you finance the vehicle, the lower the monthly car payment.

With that being said, how long can you finance a used car? Technically, there is no restriction on how long you can finance a used car. However, the average auto loan term is around 60 to 72 months and that’s what most lenders will allow. Of course, your specific terms can vary so it’s best to work with the Bill Luke Tempe finance experts for assistance. Learn all about financing a pre-owned vehicle today with our team!

Short-Term vs. Long-Term Auto Loans

Depending on your specific Phoenix lifestyle, a short-term or long-term automotive loan may be a better fit. But, which one is right for you? The answer can vary but take a look below to determine some of the advantages and disadvantages of short and long-term automotive loans:

Short-Term Auto Loans


  • Lower Cost: You’ll pay less interest over time, resulting in lower overall costs with short-term auto loans.
  • Interest Rate: Oftentimes, opting for a short-term auto loan results in a lower interest rate.
  • Positive Equity: It’s easier to have positive equity on your auto loan as you’ll be paying it off faster. As a result, there’s less chance of you being upside down or having negative equity on your vehicle.


  • Increased Monthly Payment: One of the main disadvantages of having a short-term loan is the higher monthly payment. We recommend ensuring a short-term loan can fit your monthly budget before you opt for one.

Long-Term Auto Loans


  • Lower Monthly Payment: If you’ve got a tight budget, having a lower monthly payment is possible with a long-term auto loan.
  • Flexibility: If you’ve got a low interest rate, the flexibility of a long-term loan means you can spend less every month without having to worry too much about paying a lot in interest. Of course, this is depending on your interest rate.


  • Pay More Over Time: If you’ve got a high interest rate, you’ll end up paying more on your vehicle over time the longer you extend your auto loan.
  • Depreciation: Your vehicle may depreciate over time and having an extended auto loan term means you’ll be making smaller payments on it over a longer period of time. As a result, you’ll likely have negative equity for some time with a long-term auto loan.

Find Out How Long You Can Finance a Used Car With Bill Luke Tempe!

If you’re still wondering, “How long can I finance a used car?” we recommend you stop by our Tempe finance center for more information. If you don’t have time to stop by, you’re more than welcome to contact us online for further assistance! We look forward to helping you secure finance terms that are right for your needs.


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