Auto loan rates declined significantly in 2020, as the COVID-19 pandemic saw millions of Americans lose their jobs. The average 60-month interest rate on a new car loan fell from 4.60 percent to 4.22 percent. Meanwhile, the average 48-month used car loan rate fell from 5.33 percent to 4.88 percent.5 Jan 2021
What is the average interest rate on a car loan right now?
The average auto loan interest rate is 3.64% for new cars and 5.35% for used cars, according to Experian's State of the Automotive Finance Market report for the third quarter of 2021. With a credit score above 780, you'll have the best shot to get a rate below 3% for new cars.11 Jan 2022
Is 2.9 Apr good for a car?
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.9 Mar 2020
What is a good used car loan rate today?
Credit Score Average APR New Car Average APR Used Car
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661–780 3.64% 5.35%
601–660 6.32% 9.77%
501–600 9.92% 15.91%
300–500 12.99% 19.85%
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.10 Jun 2020
What is the average interest rate at a car dealership?
The average interest rate for used cars in 2019 is 4.24% to 12.25% depending on your credit score. In 2018, the average rates were 4.42% to 19.73% depending on credit scores.
What is the highest interest rate a dealership can charge?
Many states and lending institutions have put a cap on the maximum interest rate a dealer can charge for arranging financing. The cap is usually 2.5%, but dealers can and do charge higher amounts. A 5% interest hike on a $25,000 loan over 60 months equals $3,306 in profit for the dealership.
Do car dealers offer higher interest rates?
In general, you can usually get lower interest rates on a new car through a dealer than on a used car. In fact, some dealers may offer promotional financing on brand-new models, including rates as low as 0% APR to those who qualify.23 Jun 2019
What is a good APR rate for a car?
Credit score range Average interest rate
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300 to 500 14.59%
501 to 600 11.03%
601 to 660 6.61%
661 and 780 3.48%