What's a decent interest rate on a used car loan?
I want to purchase a used car, but I need to get a loan. My credit score is around 800, but I just want to make sure I get a decent interest rate. What's a favorable rate?
The average used car loan for someone in your credit range is 4.08%. However, this rate can easily change based on:
- Your income
- Debt-to-income ratio
- Promotional rates with lenders
- Your down payment amount
The better the rapport you have with the lender and the more money you put down provides a favorable tool for negotiating your rate. But more importantly, you should always shop around to find the best rate possible. The more effort you put into this step, the higher your savings will be on a used car loan.
If you pull the trigger on a used car loan, just make certain that you also budget for full coverage car insurance as most lenders will require full coverage for a financed vehicle. You can find lower premiums with the Jerry app. Jerry compares personalized rates with more than 50 top providers, including Nationwide, Allstate, and Travelers, and delivers the best deals to your phone in minutes for free. The average Jerry driver saves $879 a year on car insurance!
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