How Long Can You Finance a Used Car?

Finance Paperwork with Glasses

Are you shopping around Minneapolis for used cars? One of the questions you may have is, “How long can I finance a used car?” According to the statistics, the average loan term when financing a used car is between 60 and 72 months. Take a moment to learn about the differences between short-term and long-term loans, so you decide which option is best for you. Then, apply for financing and contact Kline Nissan to schedule some test drives in Maplewood! 



Long- vs. Short-Term Loans: Pros & Cons 

So, how long can you finance a used car? As we mentioned earlier, the average loan term for Hudson, WI drivers is between 60 and 72 months. However, when financing a used car, some banks put a 7-year cap on loan term length. Also, bear in mind that it may be difficult to find a loan on a vehicle with over 100,000 miles on the odometer. With that out of the way, let’s take a moment to compare the perks of a short-term loan to the perks of a long-term loan: 

Pros & Cons of Short-Term Loans


  • Less Interest: If your loan term is shorter, there will not be as much interest overall compared to a longer loan. What’s more, by opting for a short-term loan, you may be able to barter for a lower interest rate. 
  • Faster Buyout: You’ll pay your loan off much more quickly. 


  • Higher Monthly Payment: Your monthly payments reflect the sum of the principal of your loan and interest divided by the number of months for your loan term. A shorter loan term is going to mean higher monthly payments. 

Pros & Cons of Long-Term Loans


  • Lower Monthly Payment: With a long-term loan, you’re dividing the total loan by a greater number of months, meaning that you’ll make much lower payments each month. 


  • More Interest: You pay interest each month on your loan as a lending fee. If your loan is longer, you’re going to pay more interest over your loan term.
  • More Depreciation: As cars age, they lose value. If you plan on selling your car, but you have a long loan term length, you’re at a greater risk of developing negative equity. Negative equity is when you owe more on your car loan than it is worth in the marketplace. This could put you in a position where you’re still paying off a portion of the car loan, even after selling your vehicle. 

Discuss Financing a Used Car Near White Bear Lake 

You know how long you can finance a used car for, but the real answer to the question, “How long can I finance a used car?” is to determine which loan length is right for your needs. If you have more questions about the pros & cons of financing a used car with a long- or short-term loan, call Kline Nissan at 651-379-4300. We can answer any of your questions and help you navigate the rest of the steps of used car shopping. And while you’re here, take a moment to explore our guides on ways to get a better credit score and what is considered good mileage on a used car


More from Kline Nissan

  • 2024 Nissan Frontier MPG

    Featuring a 3.8L V6 engine as well as a nine-speed automatic transmission, you’re set up for success in the 2024 Nissan Frontier. This midsize truck is outfitted with powerful capabilities, but how many miles per gallon does the 2024 Nissan Frontier get? The Nissan Frontier mpg for model year 2024 is rated up to 18…

  • 2024 Nissan Murano Trim Levels

      The Nissan Murano is an outstanding luxury vehicle that comes with next-level performance, an extravagant cabin, and cutting-edge features. With the base model starting at $37,920 MSRP*, you can expect only the best with the 2024 Nissan Murano trim levels. Learn more about the feature upgrades and price points of the different configurations, and…

  • 2023 Nissan Armada Trim Levels & Price

      Minneapolis drivers have a wealth of choices when it comes to the new Nissan Armada, thanks to its five distinct configurations. But which of the 2023 Nissan Armada trim levels is right for you? And how much does the 2023 Nissan Armada cost? The 2023 Nissan Armada price starts at $50,700*, which is very…

Get Directions

3090 Hwy 61 N., Maplewood, MN, 55109


Your garage is empty.
Save some vehicles to get started!
Kline Nissan 45.033880, -93.044354.