What is a Good Interest Rate For a Car Loan?

Closeup of man signing a contract of car sale.

Bringing home a new vehicle from Kelley Automotive Group is a very exciting event. When you consider how to finance your vehicle, you’ll probably find yourself wondering “what is a good interest rate for a can loan?” In the following guide, we’ll detail what is the average interest rate on a car loan and why those numbers may vary given the context of a few other factors. Read on below to learn more about what is a good car loan rate.

What is the Average Interest Rate on a Car Loan?

The U.S. national average for a car loan with a 60-month term is 5.27%. But, there are many factors that help a lender determine your specific interest rate, and loan term length is one of them as the aforementioned 5.27% statistic would imply. In addition to loan term length, the following things will also affect your personal car loan interest rate:

  • Credit score
  • Age of the car being financed
  • Whether the vehicle is new or used
  • Liquid capital
  • The cost of the car being financed
  • What institution you get the loan from

Generally, hopeful Bartow car-buyers can expect to get quoted between 3%-10% for an auto loan.

What is a Good Car Loan Rate?

To determine what is a good car loan rate for you, you’ll need to consider the rates you are quoted in the context of the bulleted list above. For example, if you have perfect credit, these are the national average interest rates for various loan terms:

  • 36 Month – 4.21%
  • 48 Month – 4.31%
  • 60 Month – 4.37%
  • 72 Month – 4.45%

If your credit is less than ideal, you can expect your interest rates to be higher than these national averages. How can you ensure you’re getting the best rates? Here are a few tips:

  • If you can, spend some time strengthening your credit
  • Shop around the greater Winter Haven area for the most competitive rates
  • Do your research. What rates have others in your similar circumstances secured?

Get More Car-Buying Tips From Kelley Automotive Group

Here at Kelley Automotive Group, our finance team is happy to guide our Auburndale shoppers through the car-buying process. Contact us today to get quoted for an interest rate, or learn about other options like leasing or trading in your current vehicle.

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