Pre-Owned Auto Financing Frequently Asked Question

How do interest rates compare between new and certified vehicles, and what credit score unlocks competitive pre-owned auto financing? Moran Certified Pre-Owned answers common financing questions from buyers exploring quality vehicles. Understanding financing fundamentals empowers confident decisions.

How Does Pre-Owned Auto Financing Differ from New Vehicle Loans?

Pre-owned auto financing generally carries higher interest rates than new vehicle loans, often by four to five percentage points, not just one or two. As of 2025, average APRs for used vehicles hover around 11–12%, compared to roughly 6–7% for new cars. Certified pre-owned vehicles, however, can qualify for more competitive rates — typically 6.5% to 9.0% for buyers with strong credit.

Most lenders offer terms from 36 to 72 months, with vehicles under six years old and fewer than 75,000 miles eligible for the longest options. Applications are usually processed quickly, with decisions in just a few hours.

What Credit Score Do I Need for Pre-Owned Auto Financing?

At dealerships like Moran Certified Pre-Owned, credit scores above 720 unlock rates typically ranging from 6.0 to 7.5 percent. Scores between 680 and 719 see rates from 7.5 to 9.0 percent, while scores from 620 to 679 generally range between 9.0 and 12.0 percent. Our financing team works with multiple lenders across all credit tiers. Transparent discussions provide confidence throughout the approval process.

How Do Down Payments and Trade-Ins Work for Pre-Owned Financing?

Most lenders require 10 to 15 percent down on certified vehicles. Trade-in vehicles with positive equity reduce your financed amount dollar-for-dollar. A $5,000 trade-in applied to a $20,000 vehicle lowers your loan to $15,000, decreasing monthly payments by approximately $85 over 60 months. Your existing vehicle provides tangible value toward your next purchase.

What Loan Terms and Payment Options Are Available?

Predictable payments create peace of mind as you enjoy reliable transportation. Certified pre-owned vehicle loans typically range from 36 to 72 months, with 60-month terms balancing payments and interest costs. A 60-month loan on an $18,000 vehicle at 7.5 percent results in monthly payments around $360, compared to $430 for 48 months or $310 for 72 months. Most lenders permit early payoff without penalties.

What Documents Do I Need for Pre-Owned Auto Financing?

Applications require proof of identity, income, and residence. Bring a valid driver’s license, two recent pay stubs or tax returns, and a utility bill dated within 60 days. Additional items may include references, proof of insurance, and your trade-in vehicle’s title. Gathering documents beforehand streamlines the approval process.

Get Pre-Owned Auto Financing in Chesterfield, MI

The financing specialists at our used car dealership in Chesterfield connect you with competitive pre-owned auto financing tailored to your budget. Apply online or visit our showroom to discuss loan terms and discover certified vehicles. Experience personalized service throughout your financing journey.