If you’re considering financing a new or pre-owned vehicle, you may be wondering, “What is a good interest rate for a car loan?” The finance team at Mercedes-Benz of West Covina can answer your questions! We can help you find the right loan and interest rate for your lifestyle, and assist you with applying online via our secure online application. Below, you’ll find a chart that outlines the average credit score for a new or a used car loan, as well as the Annual Percentage Rate (APR).
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% |
What is a good car loan rate? Based on this chart, it’s anywhere between 3.17% and 13.76%, depending on your credit score.
Planning ahead is the best thing you can do to get the lowest interest rate possible. Keep the following in mind before applying for/deciding on a car loan:
The average interest rate on a three-year loan is about 3% to 4.5%. You may receive a different offer, based on the loan amount you need and whether you have not-so-perfect or good credit. Where you obtain the loan can also make a difference; credit unions, banks, and loan companies can offer different rates. Again, it’s a good idea to shop around for the best possible loan and compare interest rates, loan payments, and more. When applying for a loan, be sure to restrict your applications to a two-week window. This will help minimize the damage to your credit score from hard inquiries.
Now that you know the answer to the question, “What is a good interest rate for a car loan,” it’s time to find the right loan for you! Our finance team can assist you with the pre-approval process and answer any additional questions you may have, such as “What is a simple interest loan?” Don’t hesitate to contact us online, or give us a call at 844-314-4913 to speak with us directly!
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844-309-4651
Call Now2010 East Garvey Avenue South • West Covina, CA 91791
Get DirectionsOpen Today! Sales: 8:30am-9pm
Open Today! Service: 7am-6pm
Open Today! Parts: 7am-6pm