Is it easier to get a used car loan or a new car loan?

I'm trying to decide if I should get a new car or a used car. Which one is easier to get a loan for?

Answer
Regardless of whether you want a used car or a new car, lenders use the same determinants for approval. Credit, debt-to-income ratio, and income all play vital roles. But in some circumstances, getting a used car loan may be easier or more preferential. This has more to do with lower prices for used cars, which translate into lower monthly payments that fit better into your budget.
When budgeting, don’t rely solely on the monthly payment. For a used car, you’ll have to factor in more maintenance. While repairs may cost less for a new car, you may also have to purchase full collision or comprehensive insurance as dictated by the lender.
avatar
Eric Schad
Answered on Mar 12, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.

Read advice from car experts at Jerry

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings — it's 100% free