What Should a Used Vehicle Interest Rate Be?

David Majedi

Aug 31, 2021

Are you shopping for a new or new-to-you vehicle and are wondering if the interest rates offered to you are any good? You wouldn’t be the first to notice that used cars don’t come with the ultra-low promotional offers that are frequently advertised for new vehicle purchases. You shouldn’t expect to see a 0% financing rate when purchasing a new car. But what should used vehicle interest rates be and how can you know you have found the best possible rate available for you?

At Autorama, we are passionate about helping you drive a car you love. We are here to help you understand used vehicle interest rates and what factors may influence the rate you would qualify for.  We believe there is a car and financing option uniquely suited to your needs. Learn more about auto financing below or apply for auto financing online to get an idea of what you may qualify for. Have more questions? Don’t hesitate to reach out to a member of our expert sales team.

What Is a Good Interest Rate for a Car?

When shopping for a used car it is important to note that the interest rates on used cars are usually higher than that of new cars. In many cases, interest rates for used cars will start around 6% and can vary based on the terms of the loan. An excellent interest rate for a used car could be as low as 4% up to 8%. Most used car buyers would find a rate between 6.49% to 12.99% to be a good used car interest rate that allows them to flexibly find a used vehicle that suits their exact needs.

How Can I Get a Good Interest Rate?

There is no doubt that having good credit means that you should expect a lower interest rate when financing a used car. The best way to obtain a low-interest rate is by utilizing debt in a responsible way which allows you to obtain a higher credit score. If you have excellent or good credit you can expect to get an auto loan with a lower interest rate.

What Interest Rate Can I Expect with Poor Credit?

If you have poor or no credit, expect your interest rates to be higher. You may be offered an auto loan with an interest rate between 13.49 to 22.9%. This means that you can expect to pay more interest on your car over the term of your loan, but it can be a good option to help you get the car you need when you need it the most.

In many cases, those who obtain a loan with higher interest rates may choose to refinance. As you pay off your auto loan you build a better credit score and can in turn take advantage of better interest rates This can help to reduce the total interest paid over time and may even allow you to pay off your vehicle sooner than initially expected.

Can I Finance a Car Even If I Have No Credit?

When you have low or no credit you might feel anxious about the loan options available to you. There are many valid reasons why a person may have no credit including simply being too young to have built any or being new to Canada. If you have no credit history, don’t worry. We are pleased to help match you with a financing option that uniquely suits your needs. Apply for auto financing at Autorama and let us help you find the perfect solution when it comes to your auto loan and vehicle too. For more information on no credit financing see our previous article, Financing a Car With Little or No Credit.

Where Should I Go to Finance a Used Car?

You have many options when it comes to financing a used vehicle but, in most cases, financing at the dealership is the most convenient option. When you finance your car at Autorama, we are there with you every step of the way. From finding your perfect used car for sale within our inventory to helping match you with your ideal financing option.

You may wish to consider looking for auto loans through your personal bank or with an alternative lender though, at Autorama, we believe we have the perfect car and financing solution for you. Contact us today and let us help you get into your dream car. 

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David Majedi

David brings a decade of experience to his role as Finance Manager at Autorama. Having served a diverse clientele with unique financing needs over the years, he has gained comprehensive knowledge of the market and forged created relationships with all lenders, including banks and private lenders.

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