The average interest rate for those with a high credit rating is around 3.9 percent today. If your score is between 680 and 739, you will probably pay a bit more for your car loan in terms of interest. The average interest rate for a person with a good but not excellent credit score is around 4.5 percent.
Is 3% interest rate good for a car?
According to Middletown Honda, depending on your credit score, good car loan interest rates can range anywhere from 3 percent to almost 14 percent. However, most three-year car loans for someone with an average to above-average credit score come with a roughly 3 percent to 4.5 percent interest rate.
What is the average interest rate on a car loan with a 700 credit score?
Credit Score New car Used car
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700-760 3.00% 4.25%
650-700 5.50% 6.50%
600-650 9.75% 10.75%
550-600 15.50% 17.50%
What is too high of an interest rate for a car?
If you have excellent credit (750 or higher), the average auto loan rates are 5.07% for a new car and 5.32% for a used car. If you have bad credit (451-599), the average auto loan rates are 16.46% for a new car and 16.71% for a used car.
Is it smart to do a 72 month car loan?
A 72-month car loan can make sense in some cases, but it typically only applies if you have good credit. When you have bad credit, a 72-month auto loan can sound appealing due to the lower monthly payment, but, in reality, you're probably going to pay more than you bargained for.
What are the pros and cons of a 72 month auto loan?
- Pro: Getting lower monthly payments.
- Pro: Achieving greater financial flexibility.
- Con: Paying additional interest.
- Con: Having negative equity or being “upside down” in the car loan.
- Con: Buying more car than you can afford.
Is 4.9 a good interest rate on a car loan?
As of January 2020, U.S. News reports the following statistics for average auto loan rates: Excellent (750 - 850): 4.93 percent for new, 5.18 percent for used, 4.36 percent for refinancing. Good (700 - 749): 5.06 percent for new, 5.31 percent for used, 5.06 percent for refinancing.Mar 9, 2020
Will bank give loan for buying second hand car?
But even when you choose used, you might need a loan to pay for the vehicle, especially if it's a late-model car. Banks, credit unions, auto dealerships and online lenders all offer used car loans.
Which bank gives car loan easily?
- Car.Loan.com Auto Loan.
- myAutoloan.com.
- Carvana.
- Capital One Auto Finance.
- Credit Acceptance.
- DriveTime.
- LightStream.
- CarMax.
What is a good APR rate for a car?
Although there's always going to be some wiggle room, the average used car loan interest rates are as follows: Excellent Credit (750 or Higher) 5.1% APR. Good Credit (700 to 749) 4.91% APR. Average Credit (600 to 699) 5.89% APR.