The average loan interest rate on a 60-month new car loan is 4.36%.
However, borrowers with excellent credit pay a lower rate of around 3.724%.
If you have a score lower than 720, you’ll pay an average of 5.098%.
The lower credit score can cost you $18 per month and $1,100 in total interest.
What is a good APR for a car loan with bad credit?
Auto Loans for Good, Fair and Bad Credit
|Credit score||Average APR, new car||Average APR, used car|
|Source: Experian Information Solutions|
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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.
How do you negotiate APR on a car?
How to negotiate a low car loan interest rate:
- Make sure your credit is in good standing.
- If you have poor credit, enlist a cosigner.
- Negotiate on the price of the vehicle.
- Do your research.
- Stay away from high-interest rate loans.
- Make a large down payment and secure a shorter term.
- Bonus tip: Consider in-house financing.
Photo in the article by “President of Russia”