3 percent to almost 14 percent
People also ask
What is the average interest rate on a new car loan?
For example, the Experian credit bureau recently reported that the most creditworthy borrowers (with credit scores of 720 and above) paid an average interest rate of 3.65% on a new car loan, while the least creditworthy (with scores of 579 or below) paid an average interest rate of 14.39%. 1
What constitutes a 鈥済ood鈥?interest rate on a car loan?
What constitutes a 鈥済ood鈥?interest rate on a car loan will differ per borrower. The interest rates on auto loans depend on a variety of factors. Some of these, like the benchmark interest rates set by the Federal Reserve, are beyond your control. Other variables, however, are very much in your control. The most important one is your credit score.
What credit score is needed to get the lowest auto loan rates?
Credit scores of 719 (for a new car) or 655 (for a used car) or higher will help you qualify for the lowest auto loan interest rates.
What is the best length of a car loan?
The length of your car loan also makes a difference. Car loans today often run from 24 months (two years) to 84 months (seven years). The longer the loan term you choose, the lower your monthly payments. But your interest rate is likely to be higher, and you will end up paying more interest in total over time.