Many Used-Car Loans Are Lemons

November 4, 2013
auto financing news

Used-car buyers paid an average of 8.56 percent the second quarter to finance their purchase, compared to 4.46 percent for buyers of new vehicles, according to Experian. The credit bureau's report finds that consumers with nearly flawless credit received used-car financing with an average rate of 3.77 percent, one percentage point higher than what they would have paid for a new-car loan.

Borrowers with the riskiest credit profiles, however, were saddled with an average rate of 17.72 percent -- more than four percentage points higher than what they would have paid for a new car loan.

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