AdvertisementHow pre-owned car loans workA used car loan works much like any other vehicle loan. Interest rates on used car loansInterest rates on pre-owned car loans are usually a little higher than on new car loans. Eligibility: what lenders look forLenders assess a few key things before approving a used car loan. With the right approach, a loan turns a pre-owned car from a large one-time expense into a manageable monthly commitment. The pre-owned car market continues to grow as buyers seek affordable and reliable ways to own a vehicle.