What Are Used-Car Loan Interest Rates?
Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”
Many people don’t have enough cash on hand to purchase a car out of pocket. If you want a budget-friendly car, you might turn to a traditional car loan for financing. But you can also use a personal loan to buy a used car.
Learn about what used-car loan interest rates you might qualify for with a personal loan and how to get the best interest rate for your situation:
Current used-car loan interest rates
The used-car loan interest rate you can qualify for depends on the vehicle you’re buying, your credit, and other factors.
The personal loan companies in the table below compete for your business through Credible. You can request rates from all of these partner lenders by filling out just one form (instead of one form for each) and without affecting your credit score.
| Lender | Fixed rates | Loan amounts |
|---|---|---|
 Credible Rating
 Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
9.95% – 35.99% APR | $2,000 to $35,000** |
|
||
 Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
7.29% – 17.99% APR | $10,000 to $50,000 |
|
||
 Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
4.99% – 35.99% APR | $5,000 to $50,000 |
|
||
 Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
5.99% – 24.99% APR | $2,500 to $35,000 |
|
||
 Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
7.99% – 29.99% APR | $7,500 to $50,000 |
|
||
 Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
5.99% – 24.99% APR | $5,000 to $40,000 |
|
||
 Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
7.04% – 35.89% APR | $1,000 to $40,000 |
|
||
 Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
7.99% – 35.99% APR | $2,000 to $36,500 |
|
||
 Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
3.99% – 19.99% APR | $5,000 to $100,000 |
|
||
 Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
6.99% – 19.99% APR1 | $3,500 to $40,0002 |
|
||
 Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
18.0% – 35.99% APR | $1,500 to $20,000 |
|
||
 Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
5.49% – 17.99% APR | $600 to $50,000 (depending on loan term) |
|
||
 Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
7.95% – 35.99% APR | $2,000 to $40,000 |
|
||
 Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
6.99% – 22.28% APR10 | $5,000 to $100,000 |
|
||
 Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
8.93% – 35.93% APR7 | $1,000 to $20,000 |
|
||
 Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
|
5.94% – 35.97% APR | $1,000 to $50,000 |
|
||
 Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
4.37% – 35.99% APR4 | $1,000 to $50,0005 |
|
||
| Compare rates from these lenders without affecting your credit score. 100% free!Compare Now | ||
| All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | 10SoFi Disclosures | Read more about Rates and Terms | ||
At Credible, our goal is to empower you by providing knowledge and tools to make financial decisions that are good for your current needs and your future financial goals. To this end, we consider multiple data points including interest rates, loan terms, repayment options, fees, discounts, and customer experiences. While we do receive compensation from our partner lenders, we always identify them and we write reviews from a neutral perspective.
These are our top three lenders that offer personal loans you can use to purchase a car:
Best for good to excellent credit: LightStream
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. LightStream is a reliable option if you have a good or excellent credit score. LightStream requires a minimum credit score of 660 but offers low rates and flexible repayment terms (up to seven years if you take out a loan to purchase a car).
LightStream doesn’t charge loan origination fees or prepayment penalties, but you must identify what you’ll use the loan for and use it for that purpose only. You’ll also want to sign up for autopay to save an extra .50% on your interest rate.
Learn more: LightStream Review: Personal Loans
Best for fair credit or smaller car loans: LendingPoint
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. LendingPoint offers loans of up to $36,500 to borrowers with credit scores as low as 600. LendingPoint doesn’t charge a prepayment penalty, and you can use its loans for any personal expense, including purchasing a vehicle. Just keep in mind that if your credit score is on the lower end, you’ll likely get a loan with higher interest rates than someone with good credit.
LendingPoint charges a loan origination fee between 3% and 6% of the loan amount. Loan repayment terms are between two and four years, so your monthly payment might be higher than if you had a longer loan term.
Learn more: LendingPoint Personal Loans Review
Best for low credit score or spotty credit history: Upgrade
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. When your credit score dips below 600, it can be difficult to qualify for a loan with low interest rates and low monthly payments. If you have bad credit or a spotty credit history, a lender like Upgrade might be able to help. Upgrade loans up to $50,000 to borrowers with credit scores as low as 560, with repayment terms ranging from two to seven years. Upgrade doesn’t charge a prepayment penalty for paying off your loan ahead of schedule, and it offers free credit monitoring services and educational resources.
Keep in mind that you’ll have to pay a loan origination fee of 2.9% to 8%, which will be taken from the total loan amount you receive. And Upgrade loans aren’t available in West Virginia.
Learn more: Upgrade Personal Loans Review
Compare used-car personal loan rates by credit score
The table below shows the approximate APR for three- and five-year personal loans by credit score:
| Credit score | Average APR 3-year loan | Average APR 5-year loan |
|---|---|---|
| 780 and above | 8.42% | 10.61% |
| 720 to 779 | 11.58% | 14.25% |
| 680 to 719 | 16.09% | 17.40% |
| 640 to 679 | 21.91% | 22.96% |
| 600 to 639 | 27.23% | 27.50% |
| 0 to 599 | 31.12% | 29.45% |
Your credit score is a significant consideration when you apply for any type of loan or credit card. The three-digit number assigned to you by the credit-reporting agencies tells lenders how trustworthy you may be as a borrower. On-time payments and a low debt-to-income ratio can boost your score, while late payments, bankruptcy, and high balances can lower your score.
Used-car loan with bad credit
If you have bad credit, you may have a more difficult time getting a personal loan to buy a used car, and you’ll likely pay a higher annual percentage rate, or APR. But you do have options. If you can’t qualify for a used-car loan, here are a few ways to move the needle in your favor:
- Add a cosigner. Adding a cosigner with excellent credit to your loan application can increase your chances of approval and of getting a lower interest rate. Check if the lender you want to work with accepts cosigners.
- Make a large down payment. Bring a down payment with you to increase your chances of being approved for your loan. Not only will your down payment reduce the amount you need to borrow, but it’s also a good-faith effort to show lenders you’re serious about borrowing money.
- Reduce existing debt to lower your DTI ratio. You can raise your credit score and improve your loan approval odds by paying off existing debt. Reducing your other debt payments frees up money for loan payments.
- Avoid opening new credit cards before applying for a used-car loan. New credit inquiries can lower your credit score and signal lenders that you may be getting ready to spend a lot of money soon. Avoid taking on additional debt or opening new credit cards before signing on the dotted line for your car loan.
How do I apply for a used-car loan?
Applying for a personal loan to purchase a used car is similar to applying for any other type of loan. Follow these steps to ensure you get the best deal possible:
- Shop around. The best way to save money on a personal car loan is to compare rates and fees from multiple lenders. Simple things, like autopay discounts, can save you hundreds of dollars over the life of your loan.
- Prequalify with lenders. You can prequalify for rates without affecting your credit score, which will allow you to run the numbers to see which loans fit your financial needs. Using an online loan marketplace, like Credible, lets you compare rates from multiple lenders in one place.
- Complete the application. Once you’ve decided which lender fits your needs, it’s time to apply. Make sure you have financial and personal information readily available before beginning the application process. Your lender will need to see pay stubs, bank statements, and information about the type of car you plan to purchase.
When you borrow money for a car, do a little research to make sure you don’t pay more for the car than it’s worth. You can use websites like Edmunds or Kelley Blue Book to look up the value of the car you’re interested in.
A little extra work today can mean a lot of savings over time. Getting a used-car loan with the lowest interest rates available to you will allow you to save money on your monthly payment and on the total cost of your loan.
Before you borrow, estimate how much you’ll pay for a loan using our personal loan calculator below.
Enter your loan information to calculate how much you could pay
With a $ loan, you will pay $ monthly and a total of $ in interest over the life of your loan. You will pay a total of $ over the life of the loan.
Need a personal loan?
Compare rates without affecting your credit score. 100% free!
Checking rates won’t affect your credit score.
Comments are closed.