Average Financing Rate for Used Cars

If you’re interested in financing your next used car, you may be pleased to find that there are plenty of great financing offers available to you. It’s easy to finance a used car with all sorts of lenders to help you find average financing rates for used vehicles that work with your lifestyle.

Are you looking to find out what financing rate you can expect on a used car in the Indianapolis, Plainfield, and Bloomington, IN, areas? Just keep reading our guide, brought to you by Andy Mohr Automotive.

See Related Post: Can You Finance a Used Car?

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What Is the Average Financing Rate for a Used Car?

While financing rates can differ depending on a wide range of factors, drivers can expect to enjoy great financing rates when they shop for a used car. Drivers with a prime credit score can expect to get an average annual percentage rate (APR) of 6.04% on their loan, which will provide them with a great monthly payment.

When you speak with a member of our finance team, we’ll work to find you a lender that offers a fair APR on your vehicle, so you get a deal you’ll feel satisfied with. If you’re ready to get started with the financing process, just get pre-approved for a loan on our website today!

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How Do I Get a Lower Financing Rate?

If you’re looking to improve the APR you’re offered for a used car, the main thing you’re going to want to focus on is improving your credit score. There are a number of ways to improve your credit score, but the main steps you can take are:

• Pay Your Bills Regularly: The main thing your credit score is going to record is whether or not you’re paying your bills regularly. That’s why you want to make sure you’re meeting the minimum payments on your credit cards and not missing payments on your other debts.
• Keep Your Credit Card Bills Low: It’s important to make sure you don’t use your credit card too often. Having a credit utilization of 20% under your total credit limit may go a long way toward improving your credit score.
• Don’t Close Unused Credit Cards: If you have a credit card that hasn’t been used in a while, reconsider closing the account. Credit cards that you’ve used for a long time can show responsible credit usage, which can improve your credit score.

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What Down Payment Should I Provide for My Used Car?

Another way to improve your finance rate is by offering a good down payment on the car you want to buy. While a down payment of any size is generally desirable over no down payment at all, it’s best to stick to offering a down payment of 20% of the car’s value. This will ensure you get the ideal financing rate, and you may enjoy generally lower monthly payments with a smaller principal loan as well.

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