We receive advertising fees from the brands we review that affect the ranking and scoring. Advertiser Disclosure
This website is an informative comparison site that aims to offer its users find helpful information regarding the products and offers that will be suitable for their needs. We are able to maintain a free, high-quality service by receiving advertising fees from the brands and service providers we review on this website (though we may also review brands we are not engaged with). These advertising fees, combined with our criteria and methodology, such as the conversion rates, our team of reviewer's finding and subjective experience and product popularity, impact the placement and position of the brands within the comparison table. In the event rating or scoring are assigned by us, they are based on the position in the comparison table, or according to other formula in the event specifically detailed by us. See our How we Rate page and Terms of Use for information. The reviews, rating and scoring are provided “as-is” without guaranties or warranties regarding the information contained in our website, which shall not be considered as endorsement. We make the best efforts to keep the information up-to-date, however, an offer’s terms might change at any time. We do not compare or include all service providers, brands and offers available in the market.

Compare The Best Used Car Loans December 2022

Compare the best used car loan by checking our list of lenders to find their interest rates, terms, and more. You should compare the interest rate, loan term, and monthly payment amount. By comparing these things, you can find a lender who offers a better used vehicle loan.

Quick links

Compare Top Used Car Loans Lenders

How to Choose the Best Auto Loan Lender for a Used Car 

When choosing a lender, get quotes from at least three companies and pay attention to the following factors.

Loan Terms

A 72-month loan was the most common term for a used car loan in the first quarter of 2022.

Lower monthly payments are appealing, but taking out a loan based on this metric alone may not be a great decision. Check available terms and consider how the loan’s duration impacts the overall cost.

In general, longer terms reduce monthly expenses but accrue more interest. In contrast, shorter terms increase monthly costs, but you may pay lower interest.

APR

The APR is the interest you pay during your loan. Higher APRs result in more interest and higher monthly costs and vice versa.

Make sure lenders give you quotes for the total amount, not just monthly payments. That way, you’ll get a better understanding of the funds you need to return.

Compare the Best Used-Car Loan Rates

Here’s a useful comparison table:

Lender Starting Rate
myAutoloan 3.69%
PenFed Credit Union 4.44%
Consumer Credit Union 4.69%
Bank of America 4.79%
LightStream 4.99%

 

Used Car vs. New Car Rates

Here are the average interest rates for a used car and new car loans:

36 months 48 months 60 months
Used Car 5.11% 5.37% 6.58%
New Car 5.04% 5.07% 5.08%

 

Used Auto Loans Rates by Credit Score

The average APR varies by credit score:

Credit Score APR for Used Car APR for New Car
300-500 20.43% 12.84%
501-600 16.85% 9.75%
601-660 10.33% 6.57%
661-780 5.53% 4.03%
781-850 3.68% 2.96%

 

Approval Requirements

Every bank has special approval requirements. However, most institutions focus on your credit history and debt-to-income ratio.

The former might be the most important determinant of your rates. The better your credit rating, the more competitive the quotes.

Documents Required – Checklist

  • Proof of identity
  • Proof of income
  • Proof of residence
  • Vehicle documentation
  • Proof of insurance

What Is the Difference Between an Auto Loan and a Personal Loan?

Many people conflate auto and personal loans, but there are major differences between the two. Primarily, you can use a personal loan to finance almost anything, whereas auto loans specifically finance a used or new car purchase. Also, car loans are secured by a vehicle, which is why they typically have lower rates than personal loans.

Therefore, use auto loans when buying a new or used car. Some dealerships and lenders may provide financing without a down payment, but you can receive lower rates by making one.

Additionally, you might qualify for new or used car refinance loans if you make timely loan payments during a specific period. Lenders may also offer them if you’ve improved your credit score.

Personal loans work best if you’re a borrower who doesn’t want to make a down payment on their car. You prefer unsecured funds and don’t mind higher interest rates when purchasing a vehicle.

Unlike auto loans, personal loans might not come with a lien on the car. In other words, you retain the title, allowing you to sell the vehicle before paying off your loan.

Find the Best Used Car Loan Rates With Lendstart 

Our platform can help you choose the best offer. We offer in-depth information about reputable institutions to give you a better understanding of their lending process. Plus, we have an intuitive car loan calculator that lets you compare rates and determine the best used car loan interest rates within seconds.

FAQs

Is it hard to get a used car loan?

How old can a car be to get a loan?

What is the longest used car loan?