Mitsubishi: Additionally, paste this code immediately after the opening tag: Saved Vehicles

What Is a Good Interest Rate For a Car Loan?

car loan application

When you’re in the market for a new or used car, one question you’ll have to contend with is, “What is a good interest rate for a car loan?” Your car loan’s interest rate is a big deal because it factors into how much you’ll pay per month and over the length of your loan term. We’ll walk you through all the steps, including how your credit score factors into it and what you should expect on your car loan’s interest rate.

The finance department that Don Franklin Auto offers is a great value for drivers in and around Lexington. We’ll give you all the information you need on the financial parts of getting you behind the wheel, including how to lease a car with bad credit and other great tips. Don Franklin Auto has a passion for great customer service and we’d like to show what makes our dealership different from the rest.

What Is the Average Interest Rate on a Car Loan?

The answer to the question, “What is a good car loan rate,” is dependent on whether you want a new or used car and what your credit score is. Below, you’ll find a handy table for the interest rate you can expect based on the type of car and credit score:

Average Credit Score for New Car Annual Percentage Rate Average Credit Score for Used Car Annual Percentage Rate
781-850 4.67% 781-850 5.3%
661-780 5.53% 661-780 6.98%
601-660 8.29% 601-660 11.6%
501-600 12.48% 501-600 17.77%
300-500 15.26% 300-500 20.82%

How Do You Get a Good Rate?

Getting a better rate on a car loan can be done in a few different ways. How do you get better interest rates? Checking your credit history is the first thing you can do. The higher your credit score is, the lower an interest rate you can expect. If you have a less than perfect credit score, however, you should expect to negotiate your way to a better rate.

Don Franklin Auto Are Your Auto Experts

Getting the best deal and the best service doesn’t have to be an either-or choice. You can get both by coming to Don Franklin Auto, who proudly serve the Lexington area. We’ll help you value your trade and get you driving quicker and our online shopping makes buying that next car a whole lot more convenient. Want to know more? Just contact us to learn more about interest rates and if extended warranties are worth it. Our team can also provide other details on financing such as how you can refinance your next vehicle.

Don Franklin Auto 37.996606, -84.442716.