What Is a Good Interest Rate for a Car Loan?

Interest Rate

 

What is a good car loan rate? What is the average interest rate on a car loan in Albertville? You have questions, and that is completely understandable. Car loans can be confusing, but our finance department is here to help. So, what is a good interest rate for a car loan? That depends, so let’s find the answer below.

What is the Average Interest Rate on a Car Loan?

So, what is the average interest rate on a car loan exactly? The length of the loan is a big factor used by creditors to determine your interest rate. Here is the average car loan interest rate by term (all numbers used in this post are from Q1 2021):

Average Interest Rate on a Car Loan by Length of the Loan

  • 36 Month – 3.77%
  • 48 Month – 3.83%
  • 60 Month – 3.91%
  • 72 Month – 4.06%

What is a Good Interest Rate for a Car Loan for a New Car?

Did you know that lenders typically charge lower rates on loans for new cars? So, what is a good car loan rate for a new car? Your credit score will come into play.

Average Interest Rate on a New Car Loan by Credit Score

  • 781–850 – 2.41%
  • 661–780 – 3.54%
  • 601–660 – 6.64%
  • 501–600 – 10.81%
  • 300–500 – 14.66%

What is a Good Interest Rate for a Car Loan for a Used Car?

What is a good car loan rate for a used car? That also varies by credit score.

Average Interest Rate on a Used Car Loan by Credit Score

  • 781–850 – 3.71%
  • 661–780 – 5.54%
  • 601–660 – 10.43%
  • 501–600 – 17.26%
  • 300–500 – 21.07%

What is the Average Interest Rate on a Car Loan by Lender?

Each lender charges a different rate. So, you may want to shop around. Fortunately for our Guntersville customers, most dealerships do that for you by checking with multiple lenders in order to find you the best rate.

Average Interest Rate on a Car Loan by Lender

  • Bank of America auto loan – 2.39% (new) 2.59% (used)
  • USAA auto loan – 2.19% (new) 2.89% (used)
  • US Bank auto loan – 2.59% (new) 2.59% (used)

Let Our Finance Managers Help

Don’t try to navigate the ins and outs of car loans on your own. We make financing your next car simple. You can even get pre-approved online. We’re just a short drive away from both Gadsden. So, drop by or contact us today!

More from CDJR of Albertville

  • 2021 Jeep Grand Cherokee Towing Capacity

    When you take home a Jeep, you can expect that you’re not only getting strong performance, but impressive towing capabilities, and the Jeep Grand Cherokee towing capacity is no different. But how much can the Grand Cherokee tow you might be wondering? Boaz drivers can expect a maximum towing capacity of 7,200 pounds when they…

  • 2021 RAM 1500 Towing Capacity

    Finding out how much a RAM 1500 can tow also means knowing that the RAM 1500 towing capacity is based off a number of factors such as engine selection. But if you’re looking for the best towing available in the RAM 1500, and want to maximize the RAM 1500 towing capacity, then the 5.7L HEMI®…

  • 2021 Jeep Grand Cherokee Interior

    Boaz drivers are finding a more comfortable drive for their long trips with the 2021 Jeep Grand Cherokee interior. With plenty of legroom and cargo space, you and your passengers will be able to stretch out and leave nothing behind when you go on a road trip. Find out more about the Jeep Grand Cherokee…

Saved Vehicles

SAVED VEHICLES

You don't have any saved vehicles!

Look for this link on your favorites:

Save

Once you've saved some vehicles, you can view them here at any time.

Contact Us

844-887-0594

Call Now

6764 US-431 • Albertville, AL 35950

Get Directions

Today's Hours:

Open Today! Sales: 8am-6pm

Open Today! Service: 8am-5pm

Open Today! Parts: 7:30am-5pm

CDJR of Albertville 34.2732626, -86.1980765.