What is a Good Interest Rate for a Car Loan?

Interest Rate
 

To avoid overpaying and for a better understanding of the right interest rate per car loan with your credit score in mind, we’ve made a chart, as well as broken down how to get the best interest rate. Learn more about the average new and used car loans based on credit scores and the APR, or Annual Percentage Rate, for that average. Then, we can approve you for financing in no time!

New and Used Car APR

Average Credit Score for New Car Annual Percentage Rate Average Credit Score for Used Car Annual Percentage Rate
781-850 3.17% 781-850 3.8%
661-780 4.03% 661-780 5.48%
601-660 6.79% 601-660 10.1%
501-600 10.98% 501-600 16.27%
300-500 13.76% 300-500 19.32%

How Do You Get the Best Interest Rate?

In order to get the best interest rate, the first thing you’ll want to do is plan. Check your credit history and note the score. The higher the credit score, the lower your interest rate will be. You’ll also want to be ready to negotiate. So, what is a good car loan rate? Based on the chart above, it could be anywhere between 3.17% and 13.76%, depending on your credit score. 

After looking at this chart, plan the rate you want and be prepared to negotiate if they offer you something higher than you expected. Another thing to be careful of is the offer. You don’t only want to focus on the payment and ignore the rest of the deal. Pay close attention to the details. 

What is the Average Interest Rate on a Car Loan?

On a three-year car loan, the average interest rate is around 3% to 4.5%. However, you may be offered differently based on your credit score as well as where you’re getting the loan. In the end, the easiest way to compare your car loans and interest rates is to shop around or get pre-approved and compare that way.

Take the Step With Max Madsen's Aurora Mitsubishi 

Ourfinance center can help you with the pre-approval process and get you behind the wheel of your dream vehicle at a reasonable rate. Contact us to compare rates or to get the process started today. We’ll be for you every step of the car-buying process!

 

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