What is a Good Interest Rate For A Car Loan?

What is a good rate for a car loan? If you’re like a lot of our Hudson Oaks customers, you like to do your research. You come into a dealership knowing which car you want, what the reviews say about it, what the MSRP on it is, and what the Kelly Blue Book value is for it. But how do you know if you’ve gotten a good interest rate on the loan? What is a good interest rate for a car loan? What is the average interest rate on a car loan? You have questions. Our Finance Department has answers.

What is the Average Interest Rate on a Car Loan?

What is the average interest rate on a car loan? The answer depends on a few things: your credit score, the length of the loan, and whether the car is new or used. Let’s start by breaking down what the average interest rate on a car loan is by the length of the loan (all numbers used in this post are from Q2 2020).

Average Interest Rate on a Car Loan by Length of the Loan

  • 36 Month – 3.81%
  • 48 Month – 3.88%
  • 60 Month – 3.96%
  • 72 Month – 4.18%

What is a Good Car Loan Rate on a New Car?

What is a good interest rate on a car loan for a new car? That depends on your credit score.

Average Interest Rate on a New Car Loan by Credit Score

  • 781–850 – 3.24%
  • 661–780 – 4.21%
  • 601–660 – 7.14%
  • 501–600 – 11.33%
  • 300–500 – 13.97%

What is a Good Car Loan Rate on a Used Car?

Lenders typically charge a higher rate for used car loans. What is a good interest rate on a car loan for a used car? That also varies by credit score.

Average Interest Rate on a Used Car Loan by Credit Score

  • 781–850 – 4.08%
  • 661–780 – 6.05%
  • 601–660 – 11.41%
  • 501–600 – 17.78%
  • 300–500 – 20.67%

Learn more about how interest rates, GAP insurance, and other car-buying tips at Shottenkirk Toyota of Weatherford to make the best decision when buying a car.

Interest Rates Vary by Lender

All lenders are not made equal. What the average rate on a car loan is can vary by which bank issues the loan. Fortunately, most dealers work with multiple lenders in order to find you the best rate. That means you don’t have to visit every lender in Azle to find the best rate.

Average Interest Rate on a Car Loan by Lender

  • Bank of America auto loan – 2.39% (new) 2.69% (used)
  • USAA auto loan – 2.89% (new) 3.29% (used)
  • US Bank auto loan – 2.59% (new) 2.59% (used)

If you found this helpful, then check out some of our other car-buying tips, like leasing with bad credit, when you visit Shottenkirk Toyota of Weatherford.

Let Our Finance Department Help You Get Into Your Next Car

The experts in our finance department know what a good interest rate for a car loan is, and they will do everything possible to get it for you. They make it easy for you, too. You can even apply for financing online. We’re just a short drive away from both Fort Worth and Mineral Wells. So, drop by or contact us today!

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Shottenkirk Toyota Weatherford is your go-to destination for exceptional vehicles and automotive services in Fort Worth, TX.

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May 23, 2024
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