Skip to Content

How Long Can You Finance A Used Car (And Why)?

Exact Answer: 48 Months To 72 Months

If you are about to buy a used car or commonly known as secondhand cars or you are planning to buy then multiple checks should be performed regarding the car and another important factor, the budget as well.

In many general cases, the buyers of second-hand cars opt to pay for the car in installments rather than paying for it in just one payment. If you are among such people who want to opt to pay for the second-hand car in installments then it becomes an important question how long you can finance the second-hand car.

How Long Can You Finance A Used Car?

Installment amountTime
Above Rs. 20,00030 to 36 months
Rs. 15,000 to 20,00036 to 42 months
Rs. 10,000 to 15,00042 to 48 months
Below Rs. 10,00048 to 56 months

Several different factors play a vital role in determining the time for how long a person would be able to finance a secondhand car. Some of the factors could be the model of the second-hand car, the market value of that car, the budget of the person buying the car, and other such factors.

But apart from all these factors, there is one major factor that determines for how long a person would be able to finance a second-hand car. That major time determining factor is the installment amount that the person chooses to pay.

In the first case, that is if the person chooses to pay an amount above Rs. 20,000, then it would take that person about a minimum of 32 months to a maximum of 36 months to finance the second-hand car.

RECOMMENDED
How Long After Bank Rejected Stimulus Check (And Why)?

In the second case, that is if the person chooses to pay an amount of somewhere between Rs. 15,000 to Rs. 20,000, then it would take that person about a minimum of 36 months to a maximum of 42 months to finance the second-hand car.

In the third case, that is if the person chooses to pay an amount of somewhere between Rs. 10,000 to Rs. 15,000, then it would take that person about a minimum of 42 months to a maximum of 48 months to finance the second-hand car.

In the last case, that is if the person chooses to pay an amount below Rs. 10,000 then it would take that person about a minimum of 48 months to a maximum of 56 months to finance the second-hand car.

Why Does It Take That Long For You To Finance A Used Car?

The reason behind why it takes that long for you to finance a second-hand car is quite obvious. That is to say, the person who is buying the second-hand car chooses to pay a high installment amount, then it would take that person less amount of time to clear all the installments. 

That is to say, it would take a shorter duration for that person to finance the second-hand car if that person chooses to pay a higher amount in every installment period.

While on the other hand, if the person who is buying the second-hand car chooses to pay a lower installment amount, then it would take that person less time to clear all the installments as compared to the person who is paying a high amount with every installment.

RECOMMENDED
How Long After Someone Dies Is The Will Read (And Why)?

That is to say, it would take a shorter duration for that person to finance the second-hand car if that person chooses to pay a higher amount in every installment period.

In most general cases, the car loan which is provided to buyers for second-hand cars is of an amount around a total of rupees 5 lakhs. Now, depending upon the amount of money that the person would choose to pay in every installment, the time it would take that person to finance that second-hand car would vary.

Conclusion

Financing a second-hand car through installments is a very common method to pay for a car and is generally used by almost every person. The major reason and the major advantage of paying through installments for the second-hand car are that it makes the purchase more affordable.

But, on the other hand, it has several disadvantages as well. One of the biggest disadvantages of paying for a second-hand car through installments is that you will have to pay a big amount only for interest.

References

  1. https://www.aeaweb.org/articles?id=10.1257/aer.104.11.3668
  2. https://www.jstor.org/stable/2555410
How Long Can Cooked Chicken Sit Out x
How Long Can Cooked Chicken Sit Out