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!

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