Useful Life vs. Loan Term and Amount

When you apply for a used car auto loan, keep the age of the car in mind. Larger loan amounts and longer financing terms may make sense for a certified pre-owned car that is fresh off lease with low miles and a long warranty. If you are buying a later model car with higher mileage that's out of warranty, you should borrow as little as your budget will allow and pay it back over as short a term as you can. Otherwise, you may find yourself in the position of having to pay for both costly repairs and a car payment.