We understand that most drivers in the Nashua and Manchester area want to avoid overpaying for a car loan. Because of this, you may be asking, "What is a good interest rate for a car loan?" The answer to this question depends on a couple of factors. Audi Statham has details on the average interest rate for new and used car loans based on credit scores and the APR, or Annual Percentage Rate. When you're ready to begin the financing process, we can help you get approved for financing in no time.
New and Used Car 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% |
How Do You Get the Best Interest Rate?
What is a good car loan rate? If you are looking to get the best rate possible, a little planning ahead can go a long way. The first step is to take a look at your credit history and credit score. As your credit score increases, your interest rate decreases. Another important step is to prepare for a negotiation. Depending on your credit score, a good interest rate for you can range from 3.17% to 13.76%.
The chart can be a helpful tool in the negotiation process. Before you accept what you are offered, be sure to carefully look at the entire offer, not just at what you will be paying each month.
What is the Average Interest Rate on a Car Loan?
If you are taking out a three-year car loan, you can expect the average interest rate to be somewhere around 3% to 4.5%. Keep in mind that this number can vary based not only on your credit score, but as well as on where you decide to get the loan. For example, you can finance a car with no credit, but your rates will be higher. To ensure you are getting the best rates possible, it is a good idea to shop around for loan offers.
Financing is Hassle-Free at Audi Stratham
If you are ready to get pre-approved for financing near Concord, the team at Audi Stratham is here to assist you. Complete our online application, or stop by the dealership in person to work with a member of our finance team. We would be happy to walk you through the process. Contact us today with any questions. Looking to lower your interest rate? Learn how with our team!
