What is a Good Interest Rate for a Car Loan?

If you’re considering applying for an auto loan, you may be wondering, “What is a good interest rate for a car loan?” Keeping your credit score in mind, review the chart below and read on to learn more about getting the best possible rate, so you can drive home in the new or pre-owned vehicle you want. When you’re ready, contact our finance team near Rye and we’ll help you move forward with the next steps.

New & Used Car APR

How Can I Get the Best Possible Interest Rate?

First, you’ll want to plan ahead by checking your credit report and credit score. Generally, the higher your credit score, the lower the interest rate on your loan. Plus, it doesn’t hurt to be ready to negotiate; you may be able to negotiate a better interest rate if you have good credit and a steady income on your side. What is a good car loan rate, exactly? Looking at the chart above, a good interest rate is between 3.17% and 13.76% when you take your credit score into account.

Choose the rate you’re aiming for and be ready to negotiate if you’re offered a higher rate. Additionally, make sure you understand the other terms surrounding the auto loan and auto loan rates; don’t focus on the payment alone.

What is the Average Interest Rate on a Car Loan?

The average interest rate for a three-year loan is 3% to 4.5%. However, you may receive a different offer depending on your credit score and the lender. The best way to compare auto loan interest rates is to explore your options and choose the offer that makes the most sense for your finances.

Receive Personalized Financing at Mercedes-Benz of Greenwich!

Now that you know the answer to the question, “What is a good rate on a car loan,” our finance center can help you move forward with the pre-approval and financing processes. If you have additional questions, or want to learn the ins and outs of trading in a financed car, don’t hesitate to contact us! You’re also welcome to visit us near Stamford and New Canaan for in-person assistance.