What is the difference in loan interest rates between new and used cars?

Answer 1

The difference in loan interest rates between new and used cars can vary depending on several factors including the borrower's credit score, the lender, and the current market conditions. However, in general, interest rates for used car loans are typically higher than those for new car loans.

On average, interest rates for new car loans can range from around 2% to 4%, while interest rates for used car loans can range from around 4% to 10% or more. The exact difference in interest rates between new and used cars will depend on the specific circumstances of the borrower and the lender.

It's always recommended to compare quotes from multiple lenders to find the best deal on a car loan. Additionally, improving your credit score and making a larger down payment can also help you secure a lower interest rate on your car loan.