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How Do Interest Rates on New vs Used Car Loans Compare Right Now?

Submitted by anonymous » Wed 17-Dec-2025, 22:40

Subject Area: General

2 member ratings

Hey everyone, wondering how interest rates stack up these days for new cars versus used ones? My old hatchback finally gave up on me last month after a long road trip – poured a ton of cash into repairs, but it was time to let go. Now I'm eyeing either a brand-new compact SUV or something reliable with a few years on it to save some upfront. Anyone know the rough difference in loan rates right now, like is it still worth going new for potentially lower interest, or does used come out ahead overall with the cheaper purchase price?

2 Comments 

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RE: How Do Interest Rates on New vs Used Car Loans Compare Right Now?

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By anonymous » Wed 17-Dec-2025, 23:13, My rating: ✭ ✭ ✭ ✭ ✩

From what I've dealt with before, new vehicles usually snag slightly better rates because lenders see them as less risky with that full warranty and all. Last time I financed a second-hand sedan a couple years back, the rate was maybe half a percent higher than what mates got on fresh models, but it varies a lot by your credit and the lender. Ended up saving heaps by shopping around through a broker like https://beaujohnsonfinance.com.au/ – they pulled options from dozens of places and got me a decent deal without the hassle of running to every bank myself. Definitely made the process smoother, especially since I hate paperwork.

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