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What's the Longest You Can Finance a Car?

What's the Longest You Can Finance a Car?

With cars becoming more expensive all the time, we are all having to borrow more to pay for them. That means either higher monthly payments or longer terms. Many of our customers choose the longer term, but how long can a car loan be for? What’s the maximum car loan length in Lincoln, Ontario?


Let’s find out!


Not all that long ago, auto loans were for 3-5 years. As auto loans are expressed in months, that was 36 to 60 months. With the price of cars increasing steadily, those terms are increasing to 6, 7 or even 8 year terms.

Maximum Car Loan Length In Lincoln


The current maximum length of an auto loan in Lincoln is 96 months. That’s 8 years. We’re sure you could go longer if you really needed to but we certainly wouldn’t recommend it.


If you need a car loan for longer than 8 years, you cannot afford the car. It’s that simple.


Pros and cons of longer auto loans


As always, there are pros and cons of going longer on a loan.


Pros of longer auto loans include:


  • Lower monthly payments – This is the obvious benefit of going long. Being able to borrow for a new car while keeping things affordable.
  • Buy a better car – Borrowing more means more to spend. Whether that’s going crazy with the options list or buying a prestige car instead of a mainstream brand, you have a lot more choice.
  • Buy hybrid or electric – If you want to embrace green motoring, you’re going to pay for it, at least at first. Electrics and hybrids currently cost a premium, which you’re going to have to pay for somehow.


Cons of longer auto loans include:


  • Pay more in interest over the term – Auto loan interest is calculated yearly and applied daily. The longer the term, the more interest you’ll pay. Even if the rate is lower, you’ll be paying that rate for longer.
  • Depreciation – Buying a new car involves depreciation. It’s just how it is. Keep the car and it’s a non-issue. Plan to sell or trade in the car within a year or two and it might be an issue.
  • A lot changes in 8 years – Life, technology, car design and the world will all change a lot in 8 years. All while you’re driving the same car or paying off the same car loan.


There is absolutely nothing wrong with using a long car loan to buy the car you want to buy. As long as you appreciate there are upsides and downsides to such a deal, you can spend your money as you wish and buy whatever car you want to buy.


Is there an ideal auto loan term?


There isn’t an ideal auto loan term. We usually advise clients to always go for the shortest possible term with the most affordable monthly repayments and lower interest rate possible.


This may limit your options but it balances the need for money for a new car with the overall expense of a longer term auto loan. If you need to borrow more and don’t mind paying the interest, then a longer loan is obviously okay.


If you’re more interested avoiding paying interest as much as possible, a shorter loan with higher monthly repayments is the way to go.


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