Used Car Loan Interest Rate

If you default on a used car loan the lending company will be left with a lower value asset to sell. In the fourth quarter of 2019 the average auto loan rate for a new car was 5 76 while the typical used car loan carried an interest rate of 9 49 according to experian s state of the automotive. Certain lenders provide loans of up to 100 of the car s value.

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The loan tenure must also be chosen wisely.

Used car loan interest rate. The rate of interest for used car loans range between 8 8 and 17. The time period for the payment of used car loan lies up to 7 years. Used car loans are provided at attractive interest rates and come with a repayment tenure of up to 7 years. Check used car loans interest rate.

Self employed individuals and salaried employees can avail a used car loan. The national average for us auto loan interest rates is 5 27 on 60 month loans. Credit scores of 719 for a new car or 655 for a used car or higher will help you qualify for the lowest auto loan interest rates. Most banks and nbfcs provide used car loans.

So the rate charged on used car loans is on the higher side and starts from 13 75. Even if your credit score is lower you may still qualify for. Used car loans typically have higher interest rates than new car financing because there s more uncertainty as to the value of the car and lenders can demonstrate that used car borrowers default more frequently on their auto loans regardless. See rates for new and used car loans and find auto loan refinance rates from lenders.

The loan offered for the used car ranges from 60 to 80 of the on road price of the car. Faster approval disbursal process on second hand car loan. They charge more interest to protect themselves and recoup more of their money in case the loan goes into default. Used car loans with repayment option for up to 48 months.

Used car loans have a higher interest rate than new car loans because used cars have a lower resale value than new cars. Even though the emi amount will reduce for longer tenures the interest rates would increase. Four year loan terms will almost always have lower interest rates than five or six year car loans. Compare auto loan rates.

As the risk associated with the used car loan is higher. It is important that you compare the interest rates offered by various banks and nbfcs before selecting one. For individual consumers however rates vary based on credit score term length of the loan age of the car being financed and other factors relevant to a lender s risk in offering a loan.