What is a Good Interest Rate for Your Car Loan?
When you're in the market for a new vehicle, one of the most critical factors to consider is the financing process. Frankfort car shoppers often ask, "What is a good interest rate for a car loan?" Understanding what constitutes a good car loan rate can save you a significant amount of money over the life of your loan. In this guide, we'll explore the different aspects of car loan interest rates, including what is a good interest rate for a car loan and what is the average interest rate on a car loan. Visit Lincoln of Lafayette, IN for personalized financing options that fit into your budget.
New and Used Car APR
How Do You Get the Best Interest Rate?
In order 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. 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. Pay close attention to the details.
What is the Average Interest Rate on a Car Loan?
Understanding what the average interest rate on a car loan is can give you a benchmark to compare against your offers. According to State of the Automotive Finance Market report, by Experian, the average interest rate is 7.18% for new cars and 11.93% for used cars. These rates can fluctuate based on economic conditions, lender policies, and individual credit profiles.
Knowing these averages can help you assess whether an offered rate is good or if you should continue negotiating or improving your credit profile.
Discover Your Interest Rate Near West Lafayette
Ready to secure a great interest rate on your next car loan? Contact Lincoln of Lafayette, IN, and schedule an appointment to explore our new and pre-owned inventory. Our team is here to help you sort out what is a good interest rate for a car loan versus what isn't, and guide you through the process of finding the best rate for you. Whether you're curious about the average interest rate on a car loan or seeking advice on how to get a good car loan rate, our finance experts have the expertise you need. Visit us today!