What's a good interest rate on a used car loan?

I want to get a used car loan, but I want to make sure I don't get a poor interest rate. What's a good interest rate for a used car loan?

Answer
The best interest rates on car loans are typically reserved for those with the best credit scores. The superprime range from 780 to 850 will get you the best rates.
Superprime rates range from 3.24% for a new car to 4.08% for a used car on average. However, your income and debt-to-income ratio will also factor into this interest rate. Therefore, you may get a rate above or below the average.
Shopping around is the only surefire way to find the best rate, as some lenders and dealers may also offer promotional rates as low a 0%, especially around major holidays. You may also want to check with your current bank or credit union, as they may sometimes offer better rates for customers with a lengthy history or good rapport with the company.
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Eric Schad
Answered on Nov 24, 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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