You may wonder if auto loan rates are lower for younger women than others, since auto insurance rates are lower and younger women have a reputation as safe drivers. The answer is no.
In actuality, there is nothing specifically about a person’s age or gender that will directly lower a car loan rate — that is, unless it’s specifically dictated by an individual dealership. However, there may be some characteristics and activities associated with being a young woman that may help to drop your auto loan rate. Let’s look at what they are.
Women Generally Have Higher Credit Scores
According to a 2007 Consumer Federation of America report, women generally have higher credit scores than men. This may attribute to younger women having lower auto loan rates. While it is noted that many young people, especially college students, have irresponsible spending habits and credit-usage behavior (it’s hard not to with so many credit card representatives promoting at college campuses), it seems that women’s credit habits are a bit more tame.
More Women Buy New Vehicles
According to a 2000 report from Woman Motorist, more women buy new vehicles than men. If this is the case, then there may be a reason young women see lower auto loan rates. Rates for new vehicles are traditionally lower than that of a used vehicle. So if more women are buying new vehicles than used, they would see lower rates.
Again, there is no gender or age determination to help lower car loan rates. But these factors may play a role in seeing lower rates for young women.