Despite times being tough, your car, finally gave out and you need to purchase reliable transportation. You know you can save tons of money by buying a gently used vehicle, and you also know that your auto insurance rates can be lower for older vehicles. But, can you get lower auto loan interest rates when buying a used vehicle?
Auto loan interest rates are indeed influenced by whether a car is being purchased new or used. Other factors that may affect the auto loan interest rate you qualify for are your personal credit history, the size of your down payment, the loan length and the age of the vehicle in question.
The savings generated by purchasing a used car comes from the discount on the ticket price and the reduced insurance premiums you may have to pay. Since cars are truly built to last these days, by purchasing a gently used three-year-old vehicle, consumers can save over $10,000 (or 32%) over the first five years of ownership.