Lenders will use your credit report and score to determine whether to approve the loan, and if so what interest rate to offer you.


If your credit score is 680 or above, you are considered a prime borrower and are eligible for the best interest rates available. The higher your score, the more bargaining power you have to negotiate a low interest rate.;
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Many lenders offer 5 year loans, as long as the car you are purchasing is less than 5 years old. Most vehicles older than 5 years are only eligible for 1 to 2 year loans, if the lender will even finance them. Lenders are fearful that an older car will not last for 5 years.
Additionally, lenders often impose minimum mileage restrictions (often 100,000 miles) and will not finance salvage-titled vehicles. Typically they will only fund loans for vehicles purchased through a franchised dealership, not through a private party or independent dealer.
 The interest rates offered on used car loans are generally 4 to 6 percent higher than rates offered on new car loans.
 Bring this letter with you to the dealership when shopping for the car.
 You will need to provide the car's make, model and VIN number, among other things. The lender will then originate the loan.
Request a copy of your credit report and credit score before applying for financing.
Contact local banks and credit unions to find out the terms and interest rates they are offering on used car loans.
Solicit rate quotes from several lenders before agreeing to a loan.
Ask the lender with the best rate offer for a pre-qualification letter outlining the terms and conditions of the loan.
Provide the lender with information about the vehicle you choose.
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