What is a Good Car Loan Rate?

Hands Doing Calculations with Calculator

 

When you’re shopping for a new or used car, it makes sense to wonder what is a good car loan rate. You want to make sure you’re getting the best deal possible, both on your car and on your loan. That’s why Serra Traverse City has compiled this chart to show you what is the average interest rate on a car loan, based on your credit score. The better your credit score, the lower your APR—Annual Percentage Rate—will be on your loan. Let our finance department help you learn more about what a good car loan rate is! 

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 a Good Car Loan Rate? 

The best interest rates are given to Kalkaska shoppers with the best credit scores. So, in order to get a good car loan rate, check your credit report. Make sure everything on it is accurate. You can—and should—dispute any incorrect items on your credit report. As you can see on the chart, higher credit scores will get better loan rates, both for new and used vehicles. Keep the APR for your credit score in mind when you get loan offers, and use them to negotiate if the interest rates you’re offered are higher than you expected. 

What is the Average Interest Rate on a Car Loan?

The average APR for excellent credit is around three to four and a half percent on a three-year auto loan in Lake City. As mentioned, that number will vary based on your credit score. The APR for a poor credit score can go as high as almost twenty percent. No matter what your credit score, shop around for loans because lenders can vary. 

Save Money by Shopping with Serra Traverse City!

Now that you understand more about what makes a good car loan rate, turn to When you’re ready to finance your next vehicle, apply for financing with us. We’ll do the legwork to find a selection of good car loan rates for you in Bellaire. We’re also here to help you with all your auto finance questions with our car-buying tips, like how to buy a new car now that you know what the average interest rate on a car loan is.

 

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