What Is a Good Interest Rate for a Car Loan?

What is a good car loan rate? If you’re like most Round Rock drivers looking to get the best rate on their car loan, then you’ve probably asked yourself this question multiple times. Knowing your credit score and what the average interest rate on a car loan is can help you get the best possible interest rate on your car loan. Learn all the tips and tricks with the finance department at Nyle Maxwell Chrysler Dodge Jeep Ram to see how you can get a good car loan interest rate and avoid overpaying. 

 

 

APR for New & Used Cars

So, what is a good interest rate on a car loan? To answer this, it’s important to know the annual percentage rate (APR) of new and used car average credit scores. To help visualize what this represents, here is a chart of the APR for new and used cars:

 

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%

 

Hopefully, this visualization helps you better understand what a good car loan rate is during your Cedar Park car-shopping experience. 

Average Car Loan Interest Rates

What is the average interest rate on a car loan? Usually, the average interest rate on a car loan is about 3-4.5%. Your credit score and where you are receiving your loan will impact the specific offer that you get. Shop around and compare car loans and interest rates from multiple Georgetown lenders to see which one offers the best rates. 

Getting the Best Interest Rates

Knowing what the average interest rate on a car loan is will help you determine the best offer you get from other lenders. Here are some other tips on how to get the best interest rates on a car loan: 

  • Plan Ahead: Check your credit score and history. The higher the credit score, the lower the interest rate will usually be. 
  • Be Ready to Negotiate: For a new car, the interest rate will fall anywhere between 3.17-13.76% depending on your credit score. Plan the rate you want, and use that to negotiate if you get offered a higher interest rate. 
  • Consider the Offer: Pay close attention to the details of the offer. Don’t just focus on the payment and ignore the rest of the details. 

Apply for financing online at Nyle Maxwell Chrysler Dodge Jeep Ram to save time at the dealership and get a head start on the process. 

Learn More at Nyle Maxwell Chrysler Dodge Jeep Ram

Now that you know what a good interest rate on a car loan is, you can start planning on what rate fits your credit score appropriately and use that number when negotiating. Contact Nyle Maxwell Chrysler Dodge Jeep Ram in Austin or online to explore all of your financing and car-buying options. 

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