How Long Should I Finance My Car?

Our team at Elite Acura is committed to getting Maple Shade, Moorestown, and Cherry Hill, New Jersey, drivers behind the wheel of their dream car with a personalized financing plan.

No matter your financing situation, our team can help you determine not just the best option for your budget, but how long you should finance your car for as well.

To learn more about our financing process and how long you should finance for, read on below!

The Pros and Cons of Short-Term Financing

First, let’s take a closer look at financing a car short-term, which typically ranges anywhere between 24 and 36 months.

With a short-term auto loan, you’ll get to experience a handful of benefits, such as potentially lower interest rates, higher resale values, and the ability to pay off the loan faster. Thanks to those lower interest rates, you also won’t find yourself paying more than the vehicle is worth by the end of your loan term.

Now, alongside those benefits comes a number of disadvantages. Most notably, short-term financing can mean much higher monthly payments. This could put a vehicle that’s well-within your overall budget outside what you can afford on a monthly basis.

The Pros and Cons of Long-Term Financing

When you get ready to finance a car, you’ll also have the ability to finance for much longer periods of time, usually somewhere between 48 and 72 months. Some dealers may even let you finance even longer, perhaps upwards of 84 to 96 months, but this is not often the case.

The main advantage of a long-term auto loan is lower monthly payments. With your term stretched out over a longer period of time, the amount of your monthly payments can go down. You may also find that a lower down payment is required when you purchase a car.

However, a long-term financing plan does carry its fair share of disadvantages, including:

• Higher interest rates
• Overpaying the price of the vehicle
• Warranties expire over the course of the loan
• Longer vehicle commitments

Determining the Best Financing Length for You

“How long should I finance my car?” Ultimately, answering this question depends entirely on your individual situation. You’ll need to consider your budgetary limitations and current credit score.

Still, it’s hard to argue that short-term financing isn’t the more financially responsible option. While the lower monthly payments of long-term financing are certainly tempting, you’ll still likely end up paying more than the vehicle is worth over a longer period of time.

If you’re unsure how long you should finance your car, there are countless online resources that can lend a hand. Our payment calculator, for example, can show you an estimate of your monthly payments based on the following information:

• Vehicle price
• Interest rate
• Loan term
• Down payment
• Trade-in value

In no time, you can get a better understanding of what financing plan works for you. Our team of financing experts is also happy to take you through the benefits of both short- and long-term financing, as well as which option makes the most sense for your budget.

Finance Your Car With Elite Acura

If you’re looking to finance a new or used car near Maple Shade, Moorestown, or Cherry Hill, NJ, our team is here to help.

For answers to all your most pressing questions, or to kick off your financing journey, contact Elite Acura today!