Consumers with excellent credit profiles typically pay interest rates below the 60 month average of 4.21%, while those with credit profiles in need of improvement should expect to pay much higher rates.
The median credit score for consumers who obtain auto loans is 706.
What is the average interest rate on a car loan with a 700 credit score?
But a higher score will almost certainly get you a lower interest rate. At the end of 2017, the average credit score for a new-car loan was 713, and 656 for a used-car loan, according to an Experian report. But nearly 20% of car loans go to borrowers with credit scores below 600, according to Experian.
What is a good interest rate on a car?
Here is a breakdown of the typical interest rates you can expect with different credit scores: 850 – 740: Excellent credit score – 3.2% interest rate (on average) 739 – 680: Average credit score – 4.5% interest rate (on average) 680 and below: Sub-Prime credit score – 6.5 – 12.9% interest rate (on average) *
Is a 72 month car loan bad?
Alarming car buying statistics
Auto loans over 60 months are not the best way to finance a car because, for one thing, they carry higher car loan interest rates. Experian reveals that 42.1% of used-car shoppers are taking 61- to 72-month loans while 20% go even longer, financing between 73 and 84 months.