It can be an exciting endeavor to go out and purchase a car. It doesn’t matter if you are 16 years old and looking for your first car or 60 years old and looking for a replacement car, there is something about buying a new automobile that can get just about anyone excited. You can find a lot of good deals on used cars, but the first place you might want to start is looking at used car loans. If this is your first time looking into such a loan, you might wonder about the interest rates. What is a good interest rate for a used car loan?
There are a lot of factors that go into determining the interest rate for a car. The first factor is where you go to get the loan. Different interest rates may be offered from a private loan company, a bank, and a car dealership. The next factor may be your personal credit history and score. The better your score is, the more likely you can get a better interest rate.
If you are concerned about a bad credit score, there are sometimes poor credit loan options that you can look into. These loans tend to help you find a manageable interest rate and rebuild your credit so that you can get better loans in the future.
You might often see advertisements from car dealerships for loan interest rates below 4%. Some of these are only for those with excellent credit and can be difficult to obtain. However, if you manage to get a loan that is between 6% and 8%, you are actually doing quite well.
Purchasing a car is exciting no matter what your age may be. Start off by looking into used car loans. Depending on where you go, you will probably get different quotes on the interest rates you qualify for. If you’re under 8%, you are probably doing quite well. Go with the loan you are most comfortable with and can safely make the payments for.