 TITLE: How to Get a Used Car Loan CONTENT: What to Look for When Comparing Used Car Loans\n----------------------------------------------\nWhen you're comparing used car loans, there are several factors you should consider to find the best loan.\n*   **Down payment**: The larger the down payment you can make on the car, the less you'll need to borrow, and the less interest you'll pay over the term of the loan.\n*   **APR**: The annual percentage rate (APR) of an auto loan incorporates both the interest rate and any loan fees the lender charges. Assuming the down payment and loan terms are equal, comparing APRs is a good way to weigh the relative cost of different loans.\n*   **Term**: This refers to how many months it will take you to repay the loan. New car loan terms generally start at 36 months and go as long as 72 or even 84 months. Because used car loan amounts are typically smaller, the terms are usually shorter. Still, in 2019 the average used car loan term was about 65 months, according to Experian data. A longer term means a lower monthly payment, but also means you'll pay more in total interest over the life of the loan.\n*   **Monthly payment**: This is the amount you agree to pay the lender each month until the loan is paid off. The payment is the same every month and includes both principal and interest.\nUsed car loans often have higher interest rates than new car loans. In the last quarter of 2019, the average interest rate for a new car loan was 5.76%; for a used car, it was 9.49%, according to Experian data. The older the car is, the higher the interest rate is likely to rise.\nTaking a shorter loan term can somewhat offset the higher interest rate of used car loans, but it will cause your monthly payment to rise. For example, if you took out a 36-month used car loan at 9.49% APR, you'd pay $1,530.18 in total interest. If the same loan were stretched out to 60 months, however, you'd pay $2,598.18 in total interest. Choosing the shorter term would save you over $1,000. END