Should You Buy A New Or Used Car? - Bankrate

Dec 10, 2024 · Better interest rates: With a new car purchase, you are also more likely to get a better auto loan rate than you would with a used car purchase, often by a few percentage points.

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Buying A New Car Vs. Buying A Used Car - Edmunds

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Nov 23, 2015 · The interest rate for used car loans is usually higher than for new, and in our case it would be about 7.9%. These factors result in a monthly payment of $356. See Edmunds …

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With Interest Rates High, Is It Cheaper To Buy A New Car Or Used

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Feb 15, 2023 · Typically used cars have higher interest rates than new ones. "What I'm seeing is a range from 5.16% to 9.34%," Mark Parks, the president of Preveer Corporation, said.

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FAQs about Should You Buy A New Or Used Car? - Bankrate Coupon?

What is the difference between New and used car financing?

When debating new versus used car financing, take into account the total amount you’ll pay in interest. We’ve compiled the average new and used car loan interest rates, as well as average monthly payments for new and used cars. New car payments are about $300 higher per month on average because new cars cost more than used ones. ...

Is a new car loan better than a used car?

However, new car loans typically have lower interest rates than those for used cars. On the other hand, used cars are cheaper and tend to have smaller principles and, therefore, shorter loan terms than a new car. However, used cars may have higher interest rates than you would find on a new car loan. ...

Should you get a used car loan?

You’ll save on the sticker price of a used car, but if you plan to get a loan for your used vehicle, be prepared to pay higher rates. The current average interest rate for used car loans is around 12.01% according to Experian, but the rates you qualify for will depend on your credit score and credit history. ...

What is the difference between new-car and used-car financing?

One key difference in new-car versus used-car financing is the interest rate a lender may offer you. Since used cars are often considered higher-risk investments, due to their likelihood to break down, lenders may require a higher interest rate on your loan. New cars, on the other hand, are more likely to have lower interest rates. ...

Are interest rates on used car loans still high?

Interest rates on used auto loans are still high by historical standards, and that is keeping monthly payments high on used cars and trucks. That’s true even though used vehicle prices are coming down off record highs, and the Federal Reserve has begun cutting interest rates. ...

Can you finance a new or used car?

Luckily, having access to vehicle financing can help make the buying process more attainable. While it's possible to finance both new and used cars, each option comes with its own set of circumstances that will be important for you to consider before pursuing a loan. ...