1. • Specifically for purchasing brand-new vehicles. Lenders may offer favorable terms for new cars due to their higher value and lower risk of depreciation.

2. Interest Rates:

   • Often lower for new cars compared to used cars because they are less risky for lenders. Manufacturers or dealers sometimes offer promotional rates.

3. Loan Terms:

   • Can be flexible, typically ranging from 24 to 72 months, depending on the borrower’s preference and the lender’s policies.

4. Pros:

   • Lower Interest Rates: Generally lower than those for used cars.
   • Latest Features: New vehicles come with the latest technology and warranty coverage.
   • Potential Manufacturer Incentives: Special promotions or rebates from car manufacturers.

5. Cons:

   • Higher Purchase Price: New cars are more expensive than used ones, which can mean larger loan amounts.
   • Depreciation: New cars depreciate faster, which can affect the vehicle’s value.

Used Car Loans

1. Description:

   • Designed for purchasing pre-owned vehicles. Used cars are typically less expensive, but the loan terms and interest rates may differ from those for new cars.

2. Interest Rates:

   • Generally higher than those for new cars due to the increased risk associated with older vehicles. The rate may also vary depending on the car’s age, condition, and mileage.

3. Loan Terms:

   • May be shorter than new car loans, often ranging from 24 to 60 months. Some lenders may offer longer terms, but this can increase the total interest paid.

4. Pros:

   • Lower Purchase Price: Used cars are less expensive, leading to smaller loan amounts and potentially lower monthly payments.
   • Reduced Depreciation: Used cars depreciate at a slower rate compared to new cars.

5. Cons:

   • Higher Interest Rates: Often higher due to the increased risk of the vehicle’s condition and maintenance needs.
   • Potential for Higher Maintenance Costs: Older vehicles may require more frequent repairs or maintenance.