Loan Rates for Used Cars Jump

Auto-loan rates have dropped slightly for new cars over the past week, but are much higher for used cars, according to BankingMyWay.com.

Used-auto loan rates are about half a percentage point higher than they were a week ago. The longer the loan term, the higher the interest rate.

Still, buying a used car costs about half as much as a new car, according to Philip Reed, senior consumer advice editor at Edmunds.com. Even used cars that are only a year old are about 20% to 30% cheaper than new cars. Insurance is also less expensive, and buying a used car means you can afford a model with more luxury and performance than a comparable new car.

Edmunds has a "true cost to own" calculator on its Web site to compare different vehicles. It factors in financing, insurance, depreciation, fuel, maintenance, repairs, taxes and fees for various models and types of cars.

BankingMyWay offers a tool that shows auto loans with the lowest interest rates in your zip code.