Used Car Interest Rates Harrisburg Pa
Used Car Interest Rates
At Faulkner Auto Group, we help drivers living throughout Harrisburg, Mechanicsburg, and Trevose answer their most burning automotive questions. One topic that consistently comes up in conversation is used car interest rates.
That’s why we’ve decided to create this brief how-to guide about what goes into finding and securing a great rate. Check it out before visiting any of our convenient locations today!
Are Used Car Interest Rates Higher Than New Car Rates?
When lending agencies review your financial application, they’re primarily trying to determine your ability to pay back the loan in full and on time. They also take into account the condition and market value of the vehicle you’re looking to purchase.
While brand-new models are relatively simple to appraise, used cars present their own set of challenges: depreciation, unresolved recalls, etc. Used cars also present a higher risk of wear and tear, making them riskier in the eyes of a lender. That’s why sometimes you’ll encounter higher interest on a used model compared to a new one.
A second reason comes down to the fact that used car loans typically have higher rates of late payments and defaults. If the vehicle is repossessed, lenders risk having an “upside down” loan to manage. This occurs when the borrower owes more than the car is actually worth.
So, are used car interest rates higher than new car rates? It depends. A used car with lower mileage and limited issues has a great chance of fitting within your monthly budget.
How Do I Secure the Best Interest Rate for a Used Car?
The secret to snagging a great rate lies in the prep work you do before settling on a like-new ride. Four things you can do before visiting our finance center include:
- Know Your Credit Score. Drivers with good to excellent credit can often negotiate a better deal. A high credit score tells lenders you’re a safe bet, making it easier for them to extend a lower rate.
- Check the Vehicle History Report. Our dealerships maintain detailed records of every used car we offer. This includes its accident/service history and any recall notifications. Quality used cars backed by an official report tend to receive better rates.
- Do Your Legwork. Lenders aren’t the only people looking for a good deal. It’s totally worth your time to gather multiple quotes from area lenders—something our team is happy do for you!
- Bring Something Extra to the Table. Offering a larger down payment or lowering your debt-to-income ratio are two surefire ways to impress lenders.
Used Car Financing Made Easy
A car is an important investment. That’s why our finance center team goes the extra mile to make this necessary process as clear and simple as possible.
To get a head start, fill out a financial application through our secure site. Once you’ve submitted it, our team will start scouring our network to find a range of available loan options for you.
If you have any questions, don’t hesitate to contact the team at Faulkner Auto Group or visit any of our locations throughout Harrisburg, Mechanicsburg, and Trevose!