What is a Good Interest Rate for Your Car Loan?

Person Signing Paperwork
 

When seeking out an auto loan, you’d want to avoid overpaying and understand what is the right interest rate per car loan. Depending on your credit score, what’s considered a “good” rate will vary in Los Gatos. Check out the chart below, and learn more from the finance experts at Jaguar San Jose.

 

 

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?

To get the best interest rate, the first thing you’ll want to do is plan ahead. Check your credit history and note the score. The higher the credit score, the lower your interest rate will be. You’ll also want to be ready to negotiate in Palo Alto. So what is a good car loan rate? Based on the chart above, it could be anywhere between 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 they offer you something higher than you expected. Another thing to be careful of is the offer. You don’t only want to focus on the payment and ignore the rest of the deal. Look over the details before agreeing to it. 

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%. But you may be offered differently based on your credit score as well as where you’re getting the loan. In the end, the easiest way to compare your car loans and interest rates is to shop around in San Francisco or get pre-approved and compare that way.

Take the Step With Jaguar San Jose 

Our finance specialists will assist you through the pre-approval process and get you a reasonable rate. If you’re eyeing a new Jaguar in San Jose, we have finance and lease deals!

 

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