What is a Good Interest Rate for Your Car Loan?

Hand Typing Numbers on Calculator

When you are shopping for a vehicle, you want to avoid overpaying and make sure you get the best interest rate possible for your car loan. Keep your credit score in mind when taking a look at the chart below. Here, you can learn more about the average new and used car loans based on credit scores and the APR, or Annual Percentage Rate, for that average. To take some of the hassles out of shopping for a new car, you can apply for financing in advance from the comfort of home. 

New and Used Car APR

Average APR for New Car Loans by Credit Score

  • 781-850: 3.17% APR
  • 661-780: 4.03% APR
  • 601-660: 6.79% APR
  • 501-600: 10.98% APR
  • 300-500: 13.76% APR

Average APR for Used Car Loans by Credit Score

  • 781-850: 3.80% APR
  • 661-780: 5.48% APR
  • 601-660: 10.10% APR
  • 501-600: 16.27% APR
  • 300-500: 19.32% APR

How Do You Get the Best Interest Rate?

If you are looking to get the best interest rate that you can, it is important to do a little planning before you shop. Learn how to qualify for a car loan before heading to the dealership. Check your credit history and note the score. The higher the credit score, the lower your interest rate. Remember to prepare for negotiations as well.

So what is a good car loan rate? According to the chart, this can range between 3.17% and 13.76% based on credit score. 

If you are offered a higher interest rate than you were anticipating, you can try to negotiate a better offer. When you receive the offer, look at all of the details, don’t just focus on the payment amount. 

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%. This can vary because of your credit score and where you apply for the loan. If you want to feel confident that you are getting a good deal, get pre-approved in advance and check out other available offers as a comparison. 

Apply for Financing at Sam Leman Automotive Group

If you need assistance with automotive financing, you can trust the experts at the Sam Leman Automotive Group. Apply for financing in advance to expedite the process. We look forward to helping you drive home to Bloomington-Normal, Peoria, or Champaign in the vehicle of your dreams. Contact us today for more information or use our car payment calculator.

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