What is the maximum loan tenure for Used Car Loans?

The maximum loan term for used car loans is of 7 years or 84 months. That is the maximum term that lenders will finance the purchase of pre-owned cars. What you will be offered, in terms of the term of the loan usually depends on the applicant's profile as well as the vehicle's specifications such as age and condition.

For example, when it comes to older vehicles, or applicants perceived to be riskier, lenders may provide a loan with a shorter term; so that the vehicle does not exceed a certain amount of age at the end of the loan term. This serves to protect both the lender and the borrower. Most applicants would generally have the option of term based upon their profile's re-payability, and the lender's maximum term. The purpose behind selected a longer term is also to provide the borrower more manageable monthly repayments.