What are used car loan rates right now?

What are the rates for used car loans? I want to know if a loan is something I can afford before I take one out. I don’t want an expensive car, so I’m strictly looking at used cars right now.

Answer
It’s great you’re assessing whether you can afford a car loan right now. Many people don’t think about the cost of owning a car until after they’ve signed the loan paperwork. While it can be difficult to say exactly what your rates will be, here are some averages for different credit scores with a 60-month car loan:
  • 750+: 2.49%-4%
  • 700-749: 5.49%-9.88%
  • 600-699: 10.49%-14.94%
  • 300-599: 17.11%-20.58%
Although these are averages, loan rates vary depending on several factors, including:
  • Your location
  • Your credit score
  • Your income
  • Your downpayment
  • The loan amount and term
Since there are so many factors at play, one of the most accurate ways to learn more about your loan options is to shop around. By talking to a few different lenders or getting preapprovals, you can ensure you’re getting the best rates available.
Even if you aren’t able to get the lowest interest rate loan possible, you have the option of refinancing. Refinancing is a great way to save money on your car loan’s interest rate. Finding the right lender can be a huge pain that might end up costing you time and money.
Jerry removes the hassle by giving you one app that instantly connects you with top companies to meet your financial needs. Make sure you’re not overpaying for your car loan by comparing offers from multiple lenders to find the best option for you.
Liz Jenson
Answered on Nov 17, 2021
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