What is Good Interest Rate On a Car Loan?

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To help you make sure you are getting a fair interest rate when you apply for a car loan, Suntrup Volkswagen has created this helpful chart. What is the average interest rate on a car loan? It really depends on your credit score. When you are looking for an affordable auto loan, you can trust the experts at Suntrup Volkswagen in St. Louis. Begin the application process today, and hit the roads of St Louis in the vehicle of your dreams in no time!

New and Used Car APR

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%

How Do You Get the Best Interest Rate?

If you want to ensure you are getting the best interest rate possible, a little planning can go a long way. Take a look at your credit history and know your credit score. The better the score is, the less you will end up paying in interest. You’ll also want to be ready to negotiate.

So what is a good car loan rate? According to the chart we have provided, that answer ranges from 3.17% and 13.76%. Your credit score plays a major role in what you will be offered. After looking at this chart, plan the rate you want and be prepared to negotiate if they offer you something higher than you expected. Before you make a final decision and accept the terms of your loan, be sure to take a look at the entire offer, not just the interest rate you were given.

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%. Keep in mind that your credit score affects this figure, as well as where you decide to take out the loan, so it’s important to take the time to properly calculate the interest rate on your car loan. Apply with various lenders to see what you are offered and compare the rates from there. This can ensure that you are getting the best deal on the vehicle of your choice.

Suntrup Volkswagen Makes the Finance Process Hassle-Free

Many St Peters drivers dread the automotive financing process, but they don’t have to when they shop with us. We will walk you through the entire process and answer any questions you may have along the way. We can’t wait to make your dream car a reality. Contact us today with any questions about loan rates, if you can pay off your car loan early, and more.

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