What is a Good Interest Rate for a Car Loan?


If you’re in the market for a new or used vehicle for sale near Martinsville, it’s important to make sure you aren’t overpaying. To help drivers get a better understanding of the right interest rate per car loan, with their credit scores in mind, the Gunter CDJR Martinsville team has put together a chart that breaks down how to get the best interest rate. Learn more about the average new and used car loans based on credit scores and the APR, or Annual Percentage Rate, for that average. Then, apply for financing online to get pre-approved in no time!

How Do I Get the Best Interest Rate?

If you want to get the best interest rate, the first thing you should do is take note of your credit score. The higher your credit score, the lower your interest rate will be. You’ll also want to be ready to negotiate. Many Danville commuters have the question, “what is a good car loan rate?” Based on the chart above, it can range anywhere from 3.17% and 13.76% depending on your credit score. After looking at this chart, plan the rate you want and be prepared to negotiate if the dealership offers you a higher rate than expected. You should also be aware of the offer. You don’t only want to focus on the payment and ignore the rest of the deal. Pay close attention to the details. 

What is the Average Interest Rate on a Car Loan?

On a three-year car loan, the average interest rate is around 3% to 4.5%. However, you may receive a different offer based on your credit score as well as where you’re getting the loan from. The best way to compare your car loans and interest rates is to explore your options or get pre-approved to compare that way. 

Finance Your Next Vehicle with Gunter CDJR Martinsville 

When you’re ready to purchase your next vehicle for sale near Reidsville, NC, our finance center experts can help you get pre-approved and secure the keys to your dream car at a reasonable rate. Or, if you have any additional questions “what is a simple interest loan,” contact us and our team will help you every step of the car-buying process!

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