What is a Good Interest Rate for a Used Car Loan?

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There is no magic bullet, secret elixir or perfect answer when asking the question “what is a good interest rate for a used car loan”. The fact is, used car loan rates vary widely since lenders consider loan obligors’ (people who have to pay back a loan) level of financial risk via credit scores and factor that into loan rates. Normally, if you have a lower credit score and more risk from having less established credit, having made late payments, or having experienced bankruptcy you can expect your loan rate to be higher. Still, when considering what’s a fair rate for a used car loan, you should take into account the average new and used car loans based on credit scores. Still have questions? Contact our finance team today!


New Car Loan Rates vs. Used Car Loan Rates

Average Credit Score for New Car Annual Percentage Rate Average Credit Score for Used Car Annual Percentage Rate
781-850 3.17% 781-850 3.8%
661-780 4.03% 661-780 5.48%
601-660 6.79% 601-660 10.1%
501-600 10.98% 501-600 16.27%
300-500 13.76% 300-500 19.32%

What is the Average Used Car Loan Interest Rate?

As you can see above, the average rate for someone with an average credit score is about 5.5%, give or take. Still, what you will wind up paying could be more or less than that, not only based on your credit score, but also based on any current pre-owned vehicle specials we might be running, as well as where you get your car loan from.

Here’s How to Get a Good Interest Rate on a Used Car Loan

The most foolproof way to get a good rate on your used car loan is to improve your creditworthiness for several months or even years leading up to taking out a loan. 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.

Apply for Financing with the Help of Suntrup Automotive Group

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! If you’d like to learn more about how car financing works, contact us today! Otherwise, we’re here to help you answer your questions or help you apply for financing.


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5926 S. Lindbergh Blvd • St. Louis, MO 63123

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Suntrup Automotive Group

5926 S. Lindbergh Blvd St. Louis, MO

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38.5214964 -90.3451239
Suntrup Automotive Group 38.5214964, -90.3451239.