What is a Good Interest Rate for a Car Loan?
Car shopping in Westlake Village can be tough. After all, finding your favorite car, crossover, or SUV in our inventory is only the beginning of your journey! Our finance team at Rusnak/Westlake Porsche will help you learn the answer to one of our most frequently asked questions: “what is a good interest rate for a car loan?”
What is the Average Interest Rate on a Car Loan?
If you’re wondering “what is the average interest rate on a car loan?” there’s no one true answer. After all, it’s entirely dependent on your credit score. Malibu drivers with great credit may enjoy a rate that’s near 4%, while drivers near Agoura Hills with less than ideal credit could end up with an annual percentage rate over 10%. So, what is the average interest rate on a car loan? Generally speaking, the annual percentage rate is between 3-4.5% for a three-year loan. Browse average rates by credit score below:
APR by Credit Score (New Car)
- 781-850: 3.17%
- 661-780: 4.03%
- 601-660: 6.79%
- 501-600: 10.98%
- 300-500: 13.76%
APR by Credit Score (Used Car)
- 781-850: 3.8%
- 661-780: 5.48%
- 601-660: 10.1%
- 501-600: 16.27%
- 300-500: 19.32%
What is a Good Car Loan Rate?
Of course, the lower the rate, the better. However, a 3% interest rate may not be attainable for all drivers. However, there are plenty of ways to improve your odds at the dealership, from making a bigger down payment to negotiating a trade-in deal.
How Do I Get the Best Interest Rate Possible?
If you’re looking to get the best interest rate possible – and let’s face it, of course you are – then you’ll want to monitor your credit closely. Check your credit score to get an idea of what rates you can expect and if you can, start to whittle down existing debts – pay off outstanding loans, make future payments on time, and so forth.
Finally, remember that the interest rate is just one part of your loan, so don’t overlook the fine print on your agreement!
Find Your Next Car at Rusnak/Westlake Porsche
Are you ready to see how our finance team can help you get behind the wheel of your dream Porsche? Contact us today, and we’ll be glad to work out the perfect plan for your drives through Oxnard. We’d even love to help you learn about Santa Monica hiking trails.
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