Yes, although they function somewhat differently from new car loans. A down payment of 20 percent or more is often required and the interest rate can be a point or two higher. Understandably, banks are more hesitant to loan money for used car purchases, as they would rather own a newer car if the borrower defaults. However, the market is full of good used vehicles.

Trading in your current vehicle towards another can partially offset the cost of the new vehicle purcahse price. The trade-in's net value goes towards the purchase of a new car.

When you trade-in you don't have to worry about selling the vehicle yourself or any of the associated costs (advertising, showing the car, etc). A dealer may offer a price you could not get yourself as an incentive to purchase a new vehicle.