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How used car loans differ
The math is the same as any car loan, but used car rates run a few points higher than new at every credit score, and lenders often cap the term by the car's age and miles. The calculator starts at the used-car rate for your credit band.
A worked example
An $18,000 used car with 6% tax, $400 in fees and $2,000 down, at 9.7% for 60 months:
- Tax: $1,080
- Amount financed: $18,000 + $1,080 + $400 - $2,000 = $17,480
- Payment: $368.82 a month
- Interest: $4,649 over five years
Used car rates by credit score
The credit chips fill in a starting APR. These are typical rates by credit score, not a quote. A bank, credit union or the dealer gives you the real one, and you can type it over ours.
| Credit | Scores | New car APR | Used car APR |
|---|---|---|---|
| Excellent | 720+ | 5.2% | 7% |
| Good | 660 to 719 | 6.9% | 9.7% |
| Fair | 600 to 659 | 9.9% | 14% |
| Rebuilding | Under 600 | 13.5% | 19% |
Starting rates the calculator fills in, rounded from the averages by credit band in Experian's auto finance reports. Your lender's quote is what counts: type it over these.
Getting a better used car rate
- Get preapproved by a bank or credit union before you shop.
- Keep the term to 60 months or less on an older car.
- A bigger down payment keeps you from owing more than the car is worth.
- Ask for the out-the-door price in writing so tax and fees are not a surprise.