Why are interest rates higher on used cars?

Lenders often see used cars as higher risk because they have lower and less predictable values and are more likely to need repairs. New cars can also qualify for promotional financing from the automaker's lender, which isn't usually available on used cars, except sometimes on certified pre-owned. Your rate depends on credit, term, and lender, so compare offers. Check consumerfinance.gov for tips on shopping for auto loans.