How Long Can You Finance a Car?

If you’re starting the quest to find the perfect car around St. Charles and Florissant, you’re probably wondering, “How many years can you finance a car?” In 2020, the most common loan term is 72 months, with 84 months as the second most common choice. However, term lengths have been steadily lengthening over the years. So, is a shorter or longer loan term right for you? Let’s go through the pros and cons.


Why Choose a Longer Loan Term?

A longer loan term is often favored by those with less-than-perfect credit, but even those with perfect scores are trending toward lengthier loans in modern times. Why choose a long-term option?

  • Costs: Monthly payments are usually lower when compared to short-term loans.
  • Budget: Lower monthly payments means more room in your budget, which can free up cash for other expenses.
  • Flexibility: If you have bad credit, you may get a better deal out of a longer loan term since the total costs are spread over a longer period of time.

Why Choose a Shorter Loan Term? 

While St. Louis customers tend to prefer longer loan terms, some experts recommend aiming for 60 months instead of the common 72-month term. Why go with a shorter loan term?

  • Interest: Though you’ll pay lower monthly payments with a longer loan term, you’ll make more payments overall – which can mean a lot more interest!
  • Warranty: When your loan term and warranty are equal, that means you won’t need to worry about costly car repairs and maintenance cutting into your monthly budget.
  • Resale: Most drivers only keep a new car for 6.5 years and a used car for 5.5 years. Since resale value is almost always better for newer models, it pays to get your vehicle paid off and resold sooner rather than later.

Learn More with Green Light Auto Credit

Whether you want to further the discussion by asking, “how long can you finance a new car” or “how long can you finance a used car”, let the financial experts at Green Light Auto Credit help you make the best decision for your future. We’re always available to help drivers in the St. Louis area, so don’t hesitate to contact us with your questions.

Green Light Auto Credit Customer with new SUV and salesperson