What's a Good Interest Rate for a Used Car Loan?

The short answer is that it depends on several factors, including your credit score, the purchase price of your new car and the length of your desired loan. But we can confidently say this: if you need a car loan in Virginia, we'll make sure you get the best rate you can. Great credit, bad credit, low credit or no credit, we've got your back.

To help put interest rates in more perspective and lend more context to the idea about good vs. bad interest rates, we're answering several additional questions below. Check out our FAQs, then visit the

Charles Barker Used Car Warehouse to learn more about how interest rates affect used car financing.

Woman showing customer paperwork
Car loan paperwork with car key

What Factors Influence My Interest Rate?

Several factors can influence the interest rate you receive when financing a used car near Richmond. These include your credit score, loan term length, the age and mileage of the car and the loan amount. A higher credit score typically can help you qualify for a lower interest rate, while lower scores may result in higher rates. Our finance team can help you understand how these factors affect your specific rate.

How Can I Get a Lower Interest Rate?

To secure a lower interest rate, consider improving your credit score before applying for a loan. Timely payment of bills, reducing outstanding debt and avoiding new credit inquiries can all positively impact your credit score. Additionally, making a larger down payment when purchasing your car can reduce the loan amount and potentially lower your rate. Our used car finance experts at the Charles Barker Used Car Warehouse can provide more tips tailored to your financial situation.

Salesperson handing car keys to customer
Couple in new car smiling with thumbs up

What Should You Consider When Choosing a Car Loan?

Look at the terms, the term length and what the monthly payment comes out to. Though shorter-term loans usually offer lower interest rates, the higher monthly payments of these loan options aren't always easy to pencil into the monthly budget. Choosing a longer term can help you save more per month, even if you ultimately spend a bit more in interest over the term of the loan.

The bottom line? Make sure you can afford your loan, which is thankfully easy to do when you work with our expert team. We'll run the numbers for you and find the right loan for your needs!

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