How Do New Car Loan Rates and Used Car Loan Rates Differ?
When it comes to auto loan rates, the debate is ongoing on whether purchasing a used car or a new car will affect your rates differently. Most agree that the rates for a new car loan are lower than loans for used cars. The average interest rate for used car loans is about one percent higher than that of new car loans. The commonly agreed upon knowledge is that the interest rate on an auto loan gets higher along with the car’s age. Another benefit of purchasing a new car over a used vehicle is that you can only get zero percent financing for new cars.
