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What is a Good Interest Rate for Your Car Loan?

To avoid overpaying and for a better understanding of the right interest rate per car loan, 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 new and used car loans 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 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 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 your car loans and interest rates is to shop around or get pre-approved and compare that way.

Apply for Financing at Middletown Honda

Our finance center can help you with the pre-approval process and 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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520 Rte 211 E • Middletown, NY 10941

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Middletown Honda
Middletown Honda
520 Rte 211 E
Middletown, NY, 10941 United States
(855) 473-3053
https://www.middletownhonda.com/wp-content/themes/DealerInspireDealerTheme/images/logo.png
Middletown Honda 41.461254, -74.374162.