What is a Good Interest Rate for Your Car Loan?

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Many Kettering car shoppers are always looking for ways to save on their next vehicle purchase, starting with excellent interest rates. This is why our top question is, “what is the average interest rate on a car loan?” We’ve created a chart to break down the details about how to get an excellent interest rate on your next car loan. Learn what is a good car loan rate and more, and feel free to contact us if you have any questions. We can get you approved for financing in no time!

New and Pre-Owned Car Annual Percentage Rate (APR)

Average Credit Score for New Car Annual Percentage Rate Average Credit Score for Pre-Owned 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 Can I Get the Best Interest Rate?

Car shoppers who are interested in getting the best interest rate possible need to plan, starting with checking out their credit history. The higher the credit score, the lower your interest rate will be. With that said, be prepared to negotiate if you don’t get the rate that you were expecting. So, what is a good car loan rate? This is between 3.17% and 13.76% depending on your credit score. Once you have looked at the chart, you can plan the rate you want to get, but be ready to negotiate if you don’t get it. Don’t just focus on the interest rate, think about the entire deal and pay close attention to the details.

What is the Average Interest Rate on a Car Loan?

Three-year car loans could have an average interest rate between 3% and 4.5% As mentioned above, you can get offered a different rate based on your credit score and where you’re getting the auto loan from. The best way to compare your options and interest rates is it shop around or get pre-approved and do your comparison that way.

Find Your Next Vehicle With Mercedes-Benz of Centerville!

Now that you know what is a good interest rate for a car loan, it’s time to visit our dealership near Springboro! Our team will work with you one-on-one to help you find the new or pre-owned vehicle that’s best suited for your driving needs and budget. Contact us if you have any questions.

 

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