Average Financing Rates for Used Cars

When you're considering a used car, an important factor is financing. Knowing a little bit about used car financing before you come down to a dealership to test drive and choose the used car that's right for you can be helpful.

That's why New Holland Auto Group has put together this page for New Holland, Lancaster, and Lititz, Pennsylvania, drivers. Below we'll cover the average financing rates for used cars, some factors that can affect your financing rate, and how our finance center can help!

Let's get started.

Average Financing Rates

The average financing rates for used cars change a bit depending on credit scores and other factors. However, many people choose to take out loans for a used car, so it's not an uncommon practice.

Typically, used car financing rates come to about 8.21% for those with good credit, according to Experian's State of the Automotive Finance Market report for the fourth quarter of 2021. If your credit is above 750, your financing rate might be a bit less, and if you're below 700, it might be a bit more.

Factors That Affect Financing Rates

Credit score is one of the largest factors that affect your financing rate. The higher your credit score, the lower your rate, and the more money you save. A higher interest rate allows banks to recoup the cost of the car a little more quickly than a lower interest rate.

Income is another factor that might affect your financing rate. Your income tells the lender if you'll have the money to make monthly payments. On top of this, the larger the down payment, the less of a loan you'll need.

Shorter loan terms also typically come with lower interest rates. The longer a loan term, the more chance there is that you might not finish paying off the loan. More risk for a bank means a higher interest rate.

Finance Center

If you want to ask questions about financing rates, the financing process, or any other part of the used car buying process, our finance team is here to help. We've also got some tools on our website to lend a hand, including the Can You Finance a Used Car page and our KBB Instant Trade Offer tool.

It's our goal to help you through the used car buying process from beginning to end. If you want to know potential financing rates and options when you arrive at our dealership, apply for financing from home via our online finance application.

It takes a few minutes to fill out, and our team will get to work right away, putting together options for you. We'll discuss the different financing resources available, your budget, and other important factors when you come in.

Sit Down With Our Finance Center

If you're interested in financing a used car, our team at New Holland Auto Group is here to help. New Holland, Lancaster, and Lititz, PA, drivers can schedule an appointment with someone from our finance center, or just come down and pay us a visit. We're here to help you find the used car that's right for you.

Contact us today!