What is a Good Interest Rate for Your Car Loan?

couple meeting with a financial advisor
 

Slice the price of your monthly car payments by learning what is a good interest rate on a car loan and how to negotiate for a better one. Use our chart below to determine what your interest rate should be based on your credit score. Read on to learn what is the average interest rate on a car loan and more so you can get the best deal available on a new Chevrolet, Chrysler, Dodge, Ford, Jeep, Kia, Ram. Browse our vehicle specials to save even more when you shop for your next car at Cornerstone Auto.

 

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?

What is a good car loan rate, and how can you get one? Check your credit score. Your credit history is the main factor that dealers take into account when they determine what your interest rate will be. Having a higher credit score not only means a lower interest rate, but also gives you more negotiating power. 

What is a Good Interest Rate on a Car Loan?

What is a good interest rate for a car loan? Based on our chart above, interest rates that fall between 3.17% and 13.76% are “good” credit scores. Use our chart to determine what your interest rate should be based on your credit score, and prepare to negotiate if the dealer offers you a higher interest rate than you expected. 

What is the Average Interest Rate on a Car Loan?

A three-year car loan typically has an interest rate of 3% to 4.5%. Shop around Elk River to see what dealers are offering with your credit score. Getting pre-approved for financing at a few different dealers and comparing their interest rate offers is another tactic that smart shoppers use to get the best interest rate on a car loan. 

Apply for Financing at Cornerstone Auto

Our finance department is here to help you find the best deal on a car loan in Elk River, MN. Learn about guaranteed financing, GAP insurance, and more with our car buying tips brought to you by our car financing experts. If you have a low credit score and are concerned about the cost of financing, browse our pre-owned inventory for like-new options available at a lower price point. Apply for financing today!

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