What is a Good Interest Rate for Your Car Loan?

Photo of hands holding pencil and pressing calculator buttons over documents

Buying a car is a big investment. So, when you do wind up taking the plunge, you’ll want to make sure that you’re paying a fair amount for your next vehicle. That includes, of course, getting a good deal on an auto loan. Wondering what a good interest rate for a car loan is for you? What qualifies as a “good” rate is often determined by one’s credit score. Learn about average annual percentage rates by credit score by reading the table just below. Want to know how to improve your credit score? Here at the Garavel CJDR finance center, we can help with that too!

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%

Here’s How to Get the Best Interest Rate

In order to get the best interest rate, the first thing you’ll want to do is plan ahead. You’ll also want to make sure to keep the following tips in mind:

  • Make sure to check your credit history and note the score.
  • Remember — the higher the credit score, the lower your interest rate will be.
  • Be prepared to negotiate the APR for your car loan.
  • Don’t focus solely on the monthly payment and ignore the rest of the deal.
  • Pay close attention to the details.

As you’ll see by reading the above chart, a good interest rate for a car loan could be anywhere from 3.17% to 13.76% depending on your credit score.

What is the Average Interest Rate on a Car Loan?

When shopping for a three-year car loan, the average annual percentage rate, or APR, is roughly 3% to 4.5%. That said, the interest rate you’re offered on an auto loan could be lower or higher, depending on your credit score, credit history, and the lender you apply with. Want to streamline the process of getting approved for and comparing loans? Apply for financing pre-approval and make sure to shop around at different lenders, including our finance department.

Apply for Financing with Garavel CJDR

Our finance experts care about helping you get the best APR possible when looking for a good car loan rate! Contact our finance team today if you’re ready to compare rates or apply for financing. We can’t wait to help you save on your next car loan here at Garavel CJDR!

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