Can You Finance a Used Car? (Guide for San Luis Obispo Drivers)

Yes, you can make a pre-owned vehicle even more affordable by financing it! Just like with a new model, you can apply for a loan to finance a used car to break the cost into manageable monthly payments.

If you’re looking for the lowest possible monthly payment, you’re probably wondering: How long can you finance a used car? Most used car loan terms range from 60 to 72 months, though options vary based on your credit and the vehicle’s age. Before you dive in, you might want to read our guide on market trends and if now is a good time to buy.

Ready to get started? This guide from the CB Chevrolet finance team covers everything San Luis Obispo buyers need to know about used car loans.

Used Car Financing Restrictions: Mileage & Age

How many years can you finance a used car at a maximum? While there is no single federal limit, different lenders in the Central Coast area set their own restrictions to manage risk.

Some banks may have policies that restrict financing for vehicles that:

• Have more than 100,000 miles on the odometer.
• Are more than seven to ten years old.
• Have a “Rebuilt” or “Salvage” title.

That said, you shouldn’t worry about finding a loan that fits your needs. CB Chevy has relationships with a wide range of Santa Maria-area lenders. Even if a vehicle is older, our experts are here to help you find a financing solution that works!

Short-Term Used Car Loans: Pros & Cons

Even if you can finance a car for a longer term (like 72 months), you may want to consider a shorter loan length (like 36 or 48 months). As long as you can comfortably pay the amount each month, doing so has significant benefits.

Pros of Short-Term Loans

• Less Interest Paid: Interest is calculated monthly. A shorter term means fewer months of interest piling up, saving you hundreds or thousands of dollars in the long run.
• Faster Pay-Off: You reach total ownership sooner—meaning no car payments at all!
• Avoid Negative Equity: It is easier to build equity quickly, which is helpful if you plan to trade the vehicle in again in a few years.

Cons of Short-Term Loans

• Higher Monthly Payment: Because you are compressing the total cost into fewer months, your bill will be higher.
• Budget Tightness: Ensure the payment fits comfortably within your budget. Tip: You can lower your monthly payment on a short-term loan by increasing your down payment. Read our trade-in value tips to see how to get the most for your current car.

Long-Term Used Car Loans: Pros & Cons

A longer loan term (60–72+ months) is the most common choice for Paso Robles drivers because it offers immediate cash-flow flexibility.

Pros of Long-Term Loans

• Lower Monthly Payment: By spreading the principal balance over a longer period, your required monthly payment drops significantly.
• Buying Power: A lower payment might allow you to afford a newer or better-equipped model than you originally thought possible.

Cons of Long-Term Loans

• Higher Total Interest: You will pay more money to the bank over the life of the loan due to the extended interest accumulation.
• Vehicle Depreciation: All cars depreciate. With a long loan, you risk being “upside-down” (owing more than the car is worth) for a longer period of time.

Learn More About Used Car Financing at CB Chevy

CB Chevy is the San Luis Obispo area’s go-to dealership for affordable pre-owned vehicles. Whether you are in Paso Robles or Santa Maria, we can help you secure a competitive rate.

Check out our current used vehicle specials, and don’t hesitate to contact us if you have any further questions about how to finance a used car!