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!

More From Garavel CJDR

  • How Much Can a RAM 1500 Tow?

    How much can RAM 1500 tow? The 2020 RAM 1500 towing capacity maxes out at 12,750 pounds when properly equipped. This stunning figure has earned the RAM 1500 “Best-in-Class V8 engine towing.” Learn all about the new RAM 1500 towing capacity, and then get in touch Garavel CJDR to schedule for a test drive of the…

  • 2020 Chrysler Pacifica Towing Capacity Information

    Looking to learn how much the new 2020 Chrysler Pacifica can tow? This capable and family-friendly van is able to tow up to 3,600 pounds regardless of the trim configuration you choose, giving you plenty of power to take you to new heights whether you’re towing a boat, a camper, or a trailer. Learn all…

  • 2020 Jeep Compass Configurations

    Its sleek and sporty exterior combined with a seriously comfortable and contemporary interior make the 2020 Jeep Compass a fantastic choice for your next Norwalk family vehicle. The 2020 Jeep Compass comes in four core models as well as three special edition options so you can certainly find the configuration that delivers best on your…

CURRENT
WEATHER
Saved Vehicles

SAVED VEHICLES

You don't have any saved vehicles!

Look for this link on your favorites:

Save

Once you've saved some vehicles, you can view them here at any time.

Contact Us

203-845-8040

Call Now

300 Westport Ave • Norwalk, CT 06851

Get Directions

Today's Hours:

Sales: Closed

Service: Closed

Parts: Closed

Garavel CJDR 41.1247225, -73.3943157.