What Is a Good Interest Rate for a Car Loan?

Interest Rate

 

Interest rates play a vital role when you consider an auto loan near Lima or Toledo. They help determine the final amount you may pay per month. To avoid overpaying your car loan and for a better understanding of the right interest rate for a car loan, see our chart showing an interest rate to keep in mind. We’ve also shown you what the best interest rates could be as you seek financing for your next used auto purchase.

 

 

Learn more about the average used car loans based on credit scores and the annual percentage rate (APR), for that average. Then, we can look over your financing application in no time and get back to you with an answer.

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 Obtain a Good Interest Rate for a Car Loan?

In order to get the best interest rate on your auto loan, you want to plan ahead first and foremost. Check your credit history and note the possible score you could get. Credit agencies give everyone one free credit report per year. Take advantage of this free credit report ahead of making your large purchase.

The higher your credit score, the lower your interest rate will be. You’ll also want to get ready to negotiate. So what is a good interest rate for a car loan? Based on the chart we’ve included here, it could be anywhere between 3.17 and 13.76% depending on your credit score.

After examining the chart, plan the rate you want and be prepared to negotiate if your chosen lender offers you something higher than you expect. Another thing to watch for is the offer. While your monthly payment is important, don’t ignore the rest of the deal. Pay close attention to the details, such as what happens if your situation changes.

What Is the Average Interest Rate on a Car Loan?

On a three-year auto loan, the average interest rate is around 3 to 4.5%. But you may be offered a different rate based on your credit score as well as where you’re getting the loan from. In the end, the easiest way to compare your car loans and interest rates is to shop around or get pre-approved before shopping elsewhere. Be warned, though, about applying for financing in many places. Credit agencies may downgrade your creditworthiness if you apply for many loans in a short span of time because credit inquiries will show up on your Findlay credit report.

Test Drive a New or Used Vehicle at Exceptional Motorcar

Ready to move closer to vehicle ownership? Contact us or call (419) 785-8369 to take a test drive. Our lot has a wide selection of used vehicles for any budget and any financial situation.

Our finance center can help you with the pre-approval process. All you need to do is find the vehicle that fits your lifestyle. We’ll work with you to find a reasonable interest rate. Our team will also help you determine what is a good interest rate for your car loan. Look over our pre-owned vehicle specials to see how much money you can save.

 

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