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1) Your credit score influences your APR.
2) Used car interest rates may be higher.
3) Take the time to find the best used car insurance.
4) Additional coverage can protect your vehicle — and your wallet.
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If you’re in the market for a used vehicle in 2026, you’re probably feeling excited — and maybe a little uncertain. We want to help you keep that excitement and turn the uncertainty into confidence.
When you want to get the best deal on your next vehicle, here are four things to keep in mind:
1) Your credit score influences your APR.
Lenders use your credit score to gauge how likely you are to pay back your loan. Generally speaking, people with higher credit scores are offered lower rates than those with lower scores.
While your credit score has one of the biggest influences on your rate, other factors like your debt-to-income ratio and the vehicle’s year, make, and model also play a part. For more information on how your credit score is calculated, click here.
Good To Know: The terms interest rate and APR are often used interchangeably, but there are important differences. Your interest rate is a percentage of your loan principal that you will pay throughout the loan’s term. APR, short for Annual Percentage Rate, includes the interest rate as well as any associated fees and determines how much you’ll pay over the life of the loan.
2) Used car interest rates may be higher.
Older vehicles tend to have higher interest rates than newer vehicles. This means that, although the sticker price may be lower for a used car, you may end up paying more than you thought due to a higher interest rate over the term of the loan.
Imagine you’re shopping for a used vehicle with a maximum budget of $15,000 (approximately $250 per month over five years). You find the perfect vehicle and its sticker price is $15,000 — it should work for you, right? Well, if the APR is 15%, the total amount will actually be about $17,250 ($287 per month over five years), more than the amount you budgeted.
When you’re shopping for a used vehicle, pay attention to the sticker price and the APR you will pay before making a final decision. A used car may seem to be more affordable than a new car at face value, but when you factor in the interest rate and other fees that will be charged as part of the purchase, that might change.
Good To Know: Used car interest rates tend to vary depending on where you finance your auto loan. Many times, your local credit union or bank can offer you a lower rate than you’ll find at an auto dealership. (For reference, here are Spero’s current auto loan rates).
3) Take the time to find the best used car insurance.
Depending on the age of the vehicle, it may be more challenging to insure an older car than a new one. Insurance companies want to reduce their risk and limit the amount they pay out for potential claims. Older vehicles are more likely to experience serious mechanical issues, so naturally, they’re riskier to insure. As a result, your monthly premium may be higher than if you had chosen a new car. This doesn’t necessarily justify the expense of a new car, but it’s a factor you need to think about.
Are you looking for an auto insurance policy? Consider Spero Insurance Services. We’ll shop on your behalf and find the best plan from more than 40 trusted carriers. Plus, we’ll make sure you get personalized support from Spero team members who already know your financial goals.
4) Additional coverage can protect your vehicle — and your wallet.
In the state of South Carolina, auto insurance is required. But did you know there are other ways you can protect your financial peace of mind when purchasing a pre-owned vehicle?
The older a vehicle gets, the more expensive it can be to fix — and repairs may be needed more often. Mechanical Protection Coverage covers repair costs for unexpected failures of your vehicle's major mechanical and electrical components. Coverage also includes benefits like 24-hour roadside assistance, trip interruption coverage, and rental vehicle assistance. Even better, the coverage is transferable to a new owner if you ever sell your vehicle.
GAP insurance is another excellent option. If your car is totaled before you pay off your loan, the last thing you want to worry about is still owing money on a car you can no longer drive. GAP Insurance covers the difference between what you owe and what your insurance pays out, so you can focus on moving forward, not looking back.
Questions? Click here to set up an appointment with one of our financial counselors. Whenever you need us, we’re here to help.
This material is for educational purposes only and is not intended to provide specific advice or recommendations for any individual.
