Quick Answer: What Is A Good Interest Rate On A Car Loan??

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
Prime: 661-780 4.56% 5.97%
Nonprime: 601-660 7.52% 10.34%
Subprime: 501-600 11.89% 16.14%

2 more rows

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” http://en.kremlin.ru/events/president/news/46860