What is a Good Interest Rate for a Car Loan?

Car finance paperwork being signed


If you have been considering a new car, you want to feel confident that you are getting a great deal on the vehicle of your choice. Because of this, you may be asking yourself, “What is a good interest rate for a car loan?” The answer to this question really depends on your credit score. Reeves Volkswagen has created a guide below that answers what is the average interest rate on a car loan and what is a good car loan rate.

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 to Secure the Best Interest Rate Possible

Planning ahead is key to securing the best possible interest rate on your new or used car. Check your credit history and credit score. The higher the credit score, the lower your interest rate. So, what is a good car loan rate? According to the chart provided above, that number could range between 3.17% and 13.76% depending on your credit score.

Take a look at the chart to see where your credit score falls. Be prepared to negotiate if the dealership does not offer you the interest rate you were expecting. Remember to also take a look at the entire offer you are given, not just your monthly payments. Pay close attention to all of the details.

What is the Average Interest Rate on a Car Loan?

On average, drivers that opt for a three-year car loan can expect to pay around 3% to 4.5% in interest. Keep in mind that your offer could be quite different based on your credit score as well the lender of your choice.

Financing is Stress-Free with Reeves Volkswagen

Reeves Volkswagen takes the hassle out of automotive financing for Brandon and Wesley Chapel drivers. Begin the process right from the comfort of your home with our online application. You can also contact us for more information.

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Reeves Volkswagen 28.0535313, -82.4589577.