Are you worried that your decision to buy a used car, and not spring for a new one will affect your ability to get financing for your purchase? Well, you shouldn’t be! A lot of banks and financial institutions out there offer good rates on financing for used car purchases, given certain parameters like the age of the car in question, and of course, your own personal credit history. But the current trend in used car auto financing over the first quarter in 2017 suggests that you can expect to pay between 4.88% and 4.91% interest rates on your used car financing. The variations of course depend on the length of the loan, though the standard term for a used car loan seems to be 36 months, or 3 years. But one can also find 60 and 48 month length of finance options for used car purchases. The city and state you reside in and are purchasing from, will also affect your loan and finance options.
Bank of America (which is currently advertising a 2.89% rate of interest on a 60-month used car loan for a purchase from a dealer) and US Bank (which is offering 2.87% as its lowest rate of interest on a 36-month financing for a used car) both claim to offer highly competitive rates of interest and equivalent terms, be it for a new or used car. Both banks are also offering up to 100% or even more of the car value as the loan amount, for a total of $100,000. And one is not restricted to purchasing only from a dealer, though that will definitely offer the best interest rate options. Private purchases from an owner will also be entertained and finance provided.
While other banks may not offer such terms, Chase and Capital One are other well-known banks that do offer decent terms. Capital One, in fact, has offers online from around 2.9%, though the terms and conditions will only come to light when one actually goes through the application process – or the pre-approval online process. There also appears to be minimal change in rate between the shorter 3 year and longer 5 year loans for used cars. So, be armed with the right information before you head to the dealership or bank and you should have no problems getting competitive used car finance rates and finally financing for the purchase of your used car.