What’s a Good Interest Rate for a Car Loan?

Finance Paperwork

Shopping around for a new or used car loan in Centerville? If you’re like most people researching car loans, you want to avoid overpaying. You may also want to gain a deeper understanding of what the average interest rate for your situation could be. With all that said, we’ve made a chart that breaks down how to get the best interest rate on your next auto loan in Kettering. A good rate is generally somewhere between about 3% to 13%, give or take, depending on credit score. Learn more about the average new and used car loans based on credit scores and the APR, or Annual Percentage Rate, for that average. Then, we can approve you for financing in no time!

Average APR for New & Used Car Loans by Credit Score

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?

Looking to get the best interest rate possible? Doing your research and planning will pay dividends in this scenario. In other words, make sure to do your homework before applying for a car loan in Springboro. Check your credit history and credit score. The higher your score, the lower your interest rate will probably be. Get ready to negotiate with the finance department. Come in prepared with knowledge of the above rates so you’ll know what to expect.

Remember to pay attention to every part of the loan agreement; don’t just think in terms of the monthly payment or down payment. Consider the total cost of a loan with principal plus interest. Compare buying new vs. buying used vs. leasing. Consider the benefits of establishing credit vs. buying for cash. And don’t hesitate to contact us for assistance with everything mentioned above!

Average Interest Rate on a Car Loan in Springboro

On a 36-month new car loan, the average interest rate hovers between 3% to 4.5%. But you may be provided a different rate if you shorten or extend the duration of your loan, if your credit score changes, or if you shop around at different lenders. That’s why we suggest doing your homework before applying for financing. It doesn’t hurt to get pre-approved first, though, so you know what kind of rate you might expect to get, realistically speaking. It’s also always a good idea to make use of all the car financing tools available to you, like our online payment calculator or trade-valuation tool.

Get Approved for an Affordable Car Loan with Bob Ross Buick GMC

Ready to get approved for an affordable car loan? Apply for financing today so we can help you with the pre-approval process and get you into the new or used Buick or GMC that best fits your Bellbrook driving needs.

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