Buying Used Cars In Calgary How Long Can You Finance For

Financing a used car in Calgary is a great way to get behind the wheel of a new vehicle while keeping your budget in check. And with so many dealerships offering financing options, finding one that fits your needs is easy.

But before you start looking for a dealership or even putting together an application, there are some things you should know about financing used cars in Calgary.

How Many Years Can You Finance Your Used Car?

The answer depends on how much money you want to put down and what kind of interest rate you will pay. The average car loan term is 72 months but can vary by lender. If you want a longer repayment period, talk to your lender about options to help keep monthly payments manageable.

If possible, try to put down as much as possible when you buy a car. The less money you borrow from the bank, the lower your monthly payments will be, and the quicker it will be paid off, which means less interest paid over time.

Short vs. Long Car Loan Terms

When deciding the loan term for your used car, you will often find yourself choosing between short and long durations, each with its own advantages and drawbacks.

Pros and Cons of Short-term Loans

Short-term loans are great when you need a quick cash boost, but they can be expensive. Here are the pros and cons of using one.

Pros:

• You can get a used car loan at a much lower rate than a new car loan.
• Short-term loans are more flexible than long-term loans, so you can pay off your debt faster if you need to.
• Short-term loans allow you to buy used cars in Calgary that you otherwise couldn’t afford.

Cons:

• Short-term loan interest rates can be quite high, particularly if you have bad credit.
• You may not get approved for a loan if you have poor credit
• If you default on your payments, the lender will repossess the car and sell it to recoup what’s owed on the loan.

Pros and Cons of Long-Term Loans

If you are looking for a long-term loan on your used car in Calgary, you may want to consider the pros and cons.

Pros:

• You can lower your monthly payments.
• You might qualify for lower interest rates.
• You can get more money upfront to pay for repairs or other expenses related to owning a vehicle.
• If your credit score improves over time, you may be able to refinance into a shorter loan term with a lower interest rate down the road.

Cons:

• You have to pay more interest
• You might be stuck with the car longer than you want
• You may have trouble selling your vehicle if you want to trade it in before the loan is paid off

Ultimately, when financing a used car in Calgary, it’s crucial to weigh your monthly budget capacity against the overall cost of the loan. Your objective should be to repay the loan in the shortest possible term while comfortably managing the monthly payments. Always remember to aim for a balance that fits your immediate and long-term financial picture.