What Is a Good Interest Rate On a Used Car?

For used cars, favorable interest rates typically range from 6% to 10%, though this can vary based on numerous factors.

A good interest rate can save you thousands of dollars over the life of your car loan, so it’s important to shop around and compare rates diligently.

What Is a Good APR for a Used Car?

The Annual Percentage Rate (APR) varies based on factors like your credit score, vehicle type, loan length, and down payment.

In general, new vehicles will have lower APRs than used vehicles.

People with excellent credit scores can expect an APR of around 3% for a used car. However, for people with fair credit scores, the APR for a used car can be closer to 10%.

Tip: It’s a great idea to take some time to research and compare rates from a variety of lenders before making a decision.

What Is the Average Used Car Loan Interest Rate?

The average used car loan interest rate is about 4.5%, but it can vary based on your credit score, the car’s age and make, and the loan’s duration.

For example, if you have excellent credit, you may be able to secure a loan with an interest rate as low as 2.5%.

However, if you are financing an older car with a less-than-ideal credit, your interest rate could be around 8%.

The best way to determine the interest rate you’ll receive is to compare offers from various lenders.

How To Get a Good Interest Rate On a Used Car Loan

Interest rates in used cars vary depending on several factors, including the type of vehicle you’re looking to purchase, your credit score, and the lender you choose.

To improve your chances of getting a lower interest rate on a used car loan, consider these strategies:

• First, ensure your credit score is as high as possible. A higher credit score results in a lower interest rate.
• Second, shop around for loans from different lenders. Compare rates and terms to find the best deal.
• Third, don’t shy away from negotiating with the dealer or lender. With good credit and a willingness to shop around, you can secure a significantly lower interest rate on your used car loan. 

To help you shop around different lenders and compare rates and terms, feel free to use LoanFinder™️ and get the best car loan deals today!