Is 15% APR good for a car loan?

I was shopping around for a car loan and, due to my limited credit history, the best rate I could find was 15%. Is this good? Or should I keep shopping?

Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
In most circumstances, a 15% APR is not a good interest rate for a
car loan
—however, you may be able to make an argument for this interest rate based on national averages if:
These are the only circumstances when you could justify 15% APR as a relatively
good interest rate
compared to national averages according to Experian’s State of the Automotive Finance Market report. Even then, experts would recommend improving your credit score before adding debt from a car loan. 
Your next steps: If you’re getting offered a 15% APR, you have to question the reasoning behind it:
  • Where are you shopping? Banks and
    credit unions
    typically offer better interest rates than car dealerships—and there are plenty of private loan options, too!
  • How many places have you looked? You should compare APRs from at least three to five lenders to make sure you’re getting the best loan terms.
  • What does your credit report look like? You should typically hold off on financing a car until you have a credit score of 660 or higher.
Expert tip: If you’re still having trouble—or you just want to skip all these steps—try using the
app to find a car loan rate that works for you no matter what your credit score is. Car owners save $85 a month on average by refinancing their auto loan with Jerry.
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.

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