What is a Good Interest Rate for Your Car Loan?

If you’re taking out a car loan for your new vehicle purchase, you may have questions such as what is a good interest rate for a car loan? A lot of this has to do with how well your current credit score is, as you don’t want to end up overpaying. That’s why Apple Tree Acura is here to help Asheville and Hendersonville area customers with this chart that breaks down what is a good car loan rate based on credit scores and the average new and used car loans along with the APR, or Annual Percentage Rate, for that average. This will help you get ready to apply for financing, so let’s get started!

How Do You Get the Best Interest Rate?

Since every driver wants to get the best interest rate possible, one of the first ways you can do so is by planning ahead and checking things like your credit history and current score. Having a higher credit score, you’ll be rewarded with a lower interest rate, but you should also be prepared to negotiate if it’s higher than expected. If you want to know what is a good car loan rate, the chart above shows that it can be anywhere between 3.17% and 13.76%. Once again, this also hinges on your credit score. In addition, you want to look closely at the offer as a whole because you don’t just want to focus on the payment and ignore the rest of the deal.

What is the Average Interest Rate on a Car Loan?

So, what is the average interest rate on a car loan? For a three-year car loan, the average interest rate is around 3% to 4.5%, but this may be different depending on your credit score and where you’re getting the loan. It’s always a good idea to shop around so you can compare potentially different offers and get the best deal possible.

Apply for Financing at Apple Tree Acura

Now that you know more about what is a good car loan rate, you can find even more helpful finance and car buying features at Apple Tree Acura such as why you should choose a CPO Acura vehicle, buying vs. leasing, and getting a car loan at a bank vs. at a dealership. Our finance team is available to answer any questions you have and assist you in applying for financing online or in person. Contact us today to learn more and to schedule a visit to our dealership near Johnson City!