How long should you finance a used car?
Buying a used car for sale ought to be an exciting experience for every driver. When you work with Ewald Auto, the premier used car dealership in Waukesha, you'll certainly have plenty of options! After you find the ideal vehicle for your lifestyle, choosing a financing plan can be intimidating. How long should you finance your next used car in Waukesha? Let's learn about how financing terms affect the total cost of a used car for sale!
How long can I finance a used car?
The most common loan terms extend for 24, 36, 48, 60, 72, and 84 months. When you apply to finance a used SUV for sale near you, avoid focusing exclusively on the monthly payment. Longer loan terms typically mean lower monthly payments, which can seem like a tempting option! However, you'll want to consider the total cost of the loan before making a commitment at our used car dealership in Waukesha.
What are the disadvantages of longer-term used car loans?
When you finance a used truck in Waukesha, WI, the lender pays for the vehicle. Your monthly loan payments repay the lender for the cost of your vehicle, plus interest. Long loan terms stretch out the loan principal over more payments, so each monthly payment will be lower. But you'll be making more payments, and paying interest on each payment. Make sure to run the numbers to ensure that you understand the interest cost for your used truck for sale near you. The lower monthly payments might not be worth the extra interest over the life of the loan.
What are the disadvantages of shorter-term used car loans?
By this logic, customers should choose the shortest loan terms for their used cars for sale. For many drivers, the drawback of short-term auto loans is the expense of the monthly payments! Short-term car loans mean making larger monthly payments. If you don't want to restrict your monthly budget, a short-term car loan might not be the best choice at our used car dealership in Waukesha.
How do interest rates affect car loan terms?
Your car loan interest rate is determined by a number of factors. Your credit history and the length of the loan are important variables, but so are average interest rates. Higher interest rates mean paying more for your used car loan, no matter the length of the loan term. The best plan is to focus on securing the most favorable interest rate that you can obtain.
Is a short-term or long-term used car loan better?
If you're hoping to save money on your used car in Waukesha, strive to obtain the shortest term and lowest interest rate. You might not be able to save a ton of cash on monthly payments for your used truck in Waukesha, WI. But you'll save an impressive amount of money in interest, and pay off that used truck for sale near you faster than expected!
Ewald Auto is ready to help you find the ideal used car loan today. Stop by our showroom to browse our used cars for sale at your earliest convenience! We look forward to welcoming you to our Waukesha used car dealership.
