JUNE 18, 2026
New vs. used car loan rates: why the gap exists
Used car loans almost always carry a higher rate than new — here's the actual reasoning lenders use, and how it should factor into your decision.
Read more → (6 min read)New, used, and refinance auto loan rates — ranked by APR for your credit tier.
Lowest starting APR across both new and used vehicle loans.
You're financing at the dealership and want pre-approval leverage.
Lowest rate requires excellent credit (typically 740+).
Focused specifically on lowering payments on existing auto loans.
You already have a car loan and want to check for a lower rate.
Doesn't offer new purchase financing, refinance only.
Competitive rates specifically for used vehicle purchases.
You're buying a used car, including from a private seller.
Does not finance new vehicle purchases.
Credit union rates with broad vehicle age eligibility.
You're open to credit union membership for better terms.
Requires opening a membership account.
Built for fair-credit borrowers who may be declined elsewhere.
Your credit is fair and you've been declined by other lenders.
Starting APR is meaningfully higher than prime lenders.
APR from is the lowest advertised rate for well-qualified borrowers; your actual rate depends on credit, term, and vehicle age.
Loan type indicates whether the lender finances new purchases, used purchases, refinancing, or a combination.
Top Pick reflects our editorial ranking — partners marked this way may also compensate us.
Rates shown are representative starting rates, not guaranteed offers.
Pre-approval gives you a real rate to compare against dealer financing, and can give you negotiating leverage. It's generally a good idea to shop your rate before you're at the dealership under time pressure.
Yes — if rates have dropped or your credit has improved since you took out the loan, refinancing can lower your monthly payment or total interest paid.
Yes. Lenders typically charge higher rates for older or higher-mileage used vehicles, since they're considered higher risk collateral.
We may receive compensation from lenders when you submit an application through our link. This doesn't affect your rate or approval odds.
3 guides on auto loans — how it works, how to choose, and how to avoid common mistakes.
Used car loans almost always carry a higher rate than new — here's the actual reasoning lenders use, and how it should factor into your decision.
Read more → (6 min read)A longer term lowers the monthly payment, but the total cost — and the risk of owing more than the car is worth — moves in the opposite direction.
Read more → (6 min read)Unlike a mortgage, auto loan refinancing usually has low or no closing costs — which changes the math on when it's worth doing.
Read more → (6 min read)