What is a good used car interest rate?

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Although there’s always going to be some wiggle room, the average used car loan interest rates are as follows: Excellent Credit (750 or Higher) – 5.1% APR. Good Credit (700 to 749) – 4.91% APR. Average Credit (600 to 699) – 5.89% APR.

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Then, are used car interest rates higher?

Used car loans typically have higher interest rates than new car financing because there’s more uncertainty as to the value of the car, and lenders can demonstrate that used car borrowers default more frequently on their auto loans, regardless of their credit.

In this regard, how can I get a lower interest rate on my car loan? Other Ways to Reduce Your Auto Loan Interest Rate

  1. Make a larger down payment. The more you borrow from a lender, the more it stands to lose if you default on your payments. …
  2. Reduce the sales price. Again, the less money you borrow, the less of a risk you pose to lenders. …
  3. Opt for a shorter repayment term. …
  4. Get a cosigner.

Correspondingly, how much car loan can I get on 25000 salary?

Most lenders determine the maximum loan amount up to 10 times of your monthly salary. If you earn Rs. 25,000 per month, you may become eligible for up to Rs. 2.5 Lakhs.

How much car loan can I get on 40000 salary?

It is advised to customers that they restrict their car loans to not more than 20 percent of their monthly income. For example, if you make Rs. 40,000 per month, your monthly car loan EMI should not exceed Rs. 8,000.

2 Related Question Answers Found

What is a good interest rate for 84 month car loan?

Compare the Best Auto Loan Rates

Lender Lowest Rate Terms
PenFed Credit Union Best Overall 0.99% 36 to 84 months
LightStream Best Online Auto Loan 2.49% 24 to 84 months
Bank of America Best Bank for Auto Loans 2.14% 12 to 75 months
Consumers Credit Union Best Credit Union for Auto Loans 2.24% 0 to 84 months

Which bank is best for used car loan?

Most banks and NBFCs provide used car loans.

Lender Interest Rate Repayment Tenure
HDFC Bank 13.75% – 16.00% (Rack Interest) 7 years
Punjab National Bank Starts from 7.90% 5 years
Axis Bank 14.40% – 16.40% 5 years
Mahindra Finance Contact the bank 5 years

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