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What is a Good Interest Rate for Your Car Loan?

If you’re looking to avoid overpaying, you want to have a stronger understanding of the best interest rate per car loan. With your credit score in mind, we have made a chart and broke down the ways to get an amazing 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!

New and Used Car APR

Average New-Car Loan Annual Percentage Rate Average Used-Car Loan 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?

Plan ahead by reviewing your credit score. You will also want to prepare for negotiating. So what is a good car loan rate? Based on our chart above, it’s between 3.17% and 13.76%, depending on your credit score.

After you’ve looked at this chart, plan the rate you want to get and be ready to negotiate if they offer you a higher rate than expected. Another thing to be careful of is the offer. You don’t just want to focus on the payment and ignore the rest of the details. Pay extra close attention to the details.

What is the Average Interest Rate on a Car Loan?

On a three-year car loan, the average interest rate is about 3% to 4.5%. A different rate may be offered based on your credit score as well as where you get your loan. In the end, the easiest way to compare car loans and interest rates is to shop around or get pre-approved and compare that way.

Apply for Financing at Toyota of Downtown LA

Our finance center is here to help you get pre-approved and behind the wheel of your dream car at a reasonable rate. Contact us today with any questions or to get the process started.
 

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