What is a Good Interest Rate for Your Car Loan?

To avoid overpaying for your new or used car, you’ll want to know, “What is a good interest rate for a car loan?” For a better understanding of car loan interest rates, with your credit score in mind, we’ve made a chart as well as broke down how to get the best interest rate. Learn more about the average car loan interest rates based on credit scores and the APR, or Annual Percentage Rate, for that average.

New and Used Car APR

Average New-Car Loan Annual Percentage Rate Average Used-Car Loan 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 the Best Interest Rate?

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

After looking at this chart, plan the rate you want and be prepared to negotiate if they offer you something higher than you expected. Another thing to be careful of is the offer. You don’t only want to focus on the payment and ignore the rest of the deal. Pay close attention to the details.

2019 Honda Pilot family adventure

What is the Average Interest Rate on a Car Loan?

On a three-year car loan, the average car loan interest rate is around 3% to 4.5%. But you may be offered differently based on your credit score as well as where you’re getting the loan. In the end, the easiest way to compare rates or even discuss refinancing to lower your current rate is to shop around or get pre-approved and compare that way.

Other Ways to Get a Great Price

While a low car loan rate can save you in the long run, there are other ways to ensure you’re making a savvy purchase with your new or used Honda, including:

Find Out Your Car Loan Interest Rate Today!

The Middletown Honda finance team can help you see how your car loan interest rates stack up against the average car loan interest rates and help you with the pre-approval process to get you behind the wheel of your dream vehicle at a reasonable rate. Contact us to compare rates or to get the process started today. We’ll be for you every step of the car-buying process!

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