What is the average used car interest rate

Many dealerships offer their own financing, but you can also find auto loans at national banks, local credit unions and online lenders. Because auto loans are secured, they tend to come with lower interest rates than unsecured loan options like personal loans. When looking for a car loan, it's best to shop around with a few lenders before making your decision. Each lender has its own methodology when approving you for a loan and setting your interest rate and terms. Generally, your credit score will make the biggest impact in the rates offered.

The higher your credit score, the lower APR you'll receive. Having a higher credit score may also allow you to take out a larger loan or access a broader selection of repayment terms. Choosing a longer repayment term will lower your monthly payments, although you'll also pay more in interest overall. If you've found a few lenders that you like, see if they offer preapproval — going through this process will let you see which rates you qualify for without impacting your credit score.

It is possible to get a car loan with bad credit, although having bad credit will raise the rates you're offered. If you're having trouble getting approved or finding acceptable rates, try taking these steps:. The process of getting a car loan is similar to that of getting any other type of loan.

Here's how to start:. Overview: With auto loan options for every type of deal you can imagine — including new cars, used cars from a dealer or private seller, lease buyouts and even classic car financing — LightStream is a great option for those with good to excellent credit.

What to watch out for: You will have to sign up for autopay to get LightStream's best terms, and its longer loan terms and higher loan amounts come with less-competitive interest rates. Overview: Bank of America offers flexible and convenient auto loans you can apply for directly on its website.

Financing is available in all 50 states and Washington, D. What to watch out for: If you're applying online, the term range you can apply for is limited — you can pick only a , 60 or month term.

In the absence of planning ahead, however, you can research what your credit score currently is and come prepared to negotiate with your lender. While you may not be able to get a rate reserved for someone in a different credit tier than you, it may still be possible to improve the rate you get to some degree.

You also will want to focus on more than just the monthly payment amount, and pay close attention to the details of your offer. Ready to get approved for a great rate on your next car loan? Our finance center works with everyone, even if you have no credit! Louis, MO Look for this link on your favorites: Save. Explore our car buying tips to get answers to common questions, or reach out directly for an expert opinion.

This update will…. Read More. Yes, it can! They both offer all-wheel and front-wheel drive options for drivers. View Inventory…. Are you interested in a high-performance sedan to enhance your drives around the Bethlehem area? If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team. For you. World globe An icon of the world globe, indicating different international options.

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