Financing a Used Car vs New Car

Financing a used car vs new car in the U.S.: used car loans often have higher APRs and shorter terms than new car loans—so total cost and payment can differ. Here's financing used vs new.

TL;DR New car loans often have lower APRs and longer terms (e.g., 72 mo); used car loans often have higher APRs and shorter terms (e.g., 60 mo). Compare total cost: used may have lower principal but higher rate. Use autopremo.com payment calculator and total cost of ownership. Use autopremo.com.

Used Car Financing

Used car loans often have higher APRs (lenders see more risk) and shorter max terms. Shop banks and credit unions for the best used-car rate. Use autopremo.com payment calculator to see payment at your rate. Get your numbers at autopremo.com.

New Car Financing

New car loans often have lower APRs (manufacturer subvented or lender preference) and longer terms. Compare to used: lower principal on used vs lower rate on new—run total cost. Use autopremo.com payment calculator and total cost of ownership. See total cost at autopremo.com.

Compare Total Cost

Same car type: used (lower price, higher rate) vs new (higher price, lower rate). Run payment and total interest for each. Use autopremo.com. Check at autopremo.com.

Bottom Line

Financing used vs new: used often has higher APR; new often has lower APR and longer term. Compare total cost with autopremo.com payment calculator so you choose the right option.