What is a Good Interest Rate for a Car Loan?
What is a good car loan rate? The expert finance team at Land Rover Princeton is here to help Newark-area drivers and beyond avoid overpaying on interest rates for car loans. Read on for a better understanding of the right interest rate per car loan, with your credit score in mind. Land Rover Princeton has created an easy-to-reference chart to help drivers from South Brunswick to Mount Laurel get the best interest rate. Learn more about the average new and used car loans based on credit scores and the APR, or Annual Percentage Rate, for that average. Then, we can approve you for financing in no time!
| Average Credit Score for New Car | Annual Percentage Rate | Average Credit Score for Used Car | Annual Percentage Rate |
|---|---|---|---|
| 781-850 | 3.17% | 781-850 | 3.8% |
| 661-780 | 4.03% | 661-780 | 5.48% |
| 601-660 | 6.79% | 601-660 | 10.1% |
| 501-600 | 10.98% | 501-600 | 16.27% |
| 300-500 | 13.76% | 300-500 | 19.32% |
How Do You Get the Best Interest Rate?
In order to obtain the best interest rate, the first thing you should do is plan ahead. Check your credit history and pay attention to your credit score. The higher your credit score is, the lower your interest rate will be. You’ll also want to be prepared to negotiate. So what is a good car loan rate? Based on the chart above, it can be anywhere between 3.17% and 13.76% depending on your particular credit score.
After looking at the chart, plan the rate you want to obtain and be prepared to negotiate if you are offered a higher rate than you expected. Another thing to be cautious of is the overall offer. It is important to focus on the payment, including your rate, in addition to the rest of the deal. Pay close attention to these details.
What is the Average Interest Rate on a Car Loan?
On a three-year car loan, the average interest rate is typically around 3% to 4.5%. However, you may be offered differently based on your credit score as well as where you’re getting the loan from. Overall, the easiest way to compare your car loans and interest rates is to shop around or get pre-approved and compare that way.
Apply for Financing at Land Rover Princeton
Here at Land Rover Princeton, it is our mission to help Princeton area drivers with a hassle-free pre-approval process. Get behind the wheel of your dream Land Rover model at a reasonable rate. Contact us to compare rates, learn about the average down payment on a car with no credit, Gap insurance, or to get the process started by applying for financing online today. We’ll be there for you every step of the way as you make your way into your next luxury vehicle!
