What is a Good Interest Rate for a Car Loan?

Car-buying paperwork

So, what is the average interest rate on a car loan, and what is considered a good rate? The expert finance team at Rocky's Auto Credit is here to help drivers from Phoenix to Glendale avoid overpaying on interest rates for car loans. Read on for a better understanding of the right interest rate for a car loan, keeping your credit score in mind. Rocky's Auto Credit has created an easy-to-reference chart to help Mesa-area drivers get the best rate. Learn more about exactly what is a good car loan rate. From there, we can approve you for financing in no time!

What is the Average Interest Rate on a Car Loan?

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%

What is a Good Car Loan Rate for Me?

In order to obtain the best interest rate for your personal financial situation, the first thing you should do is plan ahead. Check your credit history and your credit score. The higher your credit score is, the lower your interest rate can be. You’ll also want to negotiate. So, what is a good car loan rate? Based on the chart, it can be anywhere between 3.17% and 13.76% depending on your credit score.

After reviewing the chart, plan the rate you want to obtain and be prepared to negotiate. Also, be cautious of the overall offer. It is important to look at the payment, including your rate, in addition to the rest of the deal.

Interest Rate Overview

So, what is the average interest rate on a car loan? On a three-year car loan, the average interest rate is typically between 3% and 4.5%. However, this may differ based on your credit score as well as where you’re getting the loan from. Overall, the easiest way to compare your car loans and interest rates is to shop around or get pre-approved online today.

Apply for Financing at Rocky's Auto Credit

Here at Rocky's Auto Credit, it is ourmission to help Mesa area drivers with a hassle-free financing process. Get behind the wheel of your dream used vehicle at a reasonable rate. Contact us to compare rates today or to get more car-buying tips, like what MSRP means.

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