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?
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.
When you finance a vehicle, lenders will require you to have full coverage car insurance. To help you save money, try using the number-one-rated car insurance app, Jerry. Jerry compares personalized rates from more than 50 top providers 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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