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December 1, 2022

What Is a Good Interest Rate On a Used Car?

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When it comes to used cars, good interest rates are in the range of 6 %- 10% but this will vary based on a number of 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.

What Is a Good APR for a Used Car?

The Annual Percentage Rate (APR) varies depending on many factors, including your credit score, the type of vehicle, the length of the loan, and the 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%.

As always, it’s important to do your research and compare rates from multiple lenders before making a decision.

What Is the Average Used Car Loan Interest Rate?

The average used car loan interest rate is around 4.5%. However, this number can vary greatly depending on factors such as your credit score, the age and make of the car you are financing, and the length of the loan.

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

On the other hand, if you are financing an older car with less-than-stellar credit, your interest rate could be closer to 8%.

The best way to get a good sense of what interest rate you’ll be offered is to shop around at different lenders and compare rates.

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

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

That said, there are a few things you can do to increase your chances of getting a lower interest rate on a used car loan:

  • First, make sure your credit score is as high as possible. The higher your credit score, the lower your interest rate will be.
  • Second, shop around for loans from different lenders. Compare rates and terms to find the best deal.
  • Finally, don’t be afraid to negotiate with the dealer or lender. If you have good credit and are willing to shop around, you should be able to get a lower interest rate on a used car loan.

Interested in a car loan? Compare lenders now >

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Lorien is the Country Manager for Financer US and has a strong background in finance and digital marketing. She is a fintech enthusiast and a lover of all things digital.

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