What is the standard car loan interest rate for used vehicles?

I want to get a nice car, so I’ve been shopping for a certified pre-owned vehicle from dealerships. I’d like to take out a loan, but I don’t know much about them. What’s the standard car loan interest rate on a certified used vehicle?

Answer
Buying a used car is a great way to save money. But the amount you save will also depend on the terms of your loan.
That being said, these are the average car loan interest rates for November 2021 based on credit score:
  • 300-500: 20.58%
  • 501-600: 17.11%
  • 601-660: 10.49%
  • 661-780: 5.49%
  • 780+: 3.66%
Remember, lenders individualize car loan interest rates for each of their borrowers—so there isn’t really a universal average APR. Here are some of the most common factors lenders consider when assigning interest rates:
  • Income
  • Debt-to-income ratio
  • Loan term and loan amount
  • Credit score and credit history
Income and the debt-to-income ratio help lenders judge whether you can afford the loan. But the loan term, loan amount, and credit score help them determine your interest rate.
The amount you borrow also plays a role in how much you pay in interest. Since lenders consider higher loan amounts a greater risk, larger sums come with higher interest.
The best way to make sure you’re getting a fair APR is to shop around for a good lender. Each lender will come with its own terms and rates, so take some time to look around before you sign any agreements.
For help making your monthly payments, start saving on car insurance with Jerry. A licensed broker, the Jerry app can help you compare quotes from over 50 top providers like Progressive and Nationwide in minutes. When you find a better rate, Jerry helps you buy your coverage and even helps cancel your old policy!
Eric Schad
Answered on Nov 11, 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.
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