Is 4.5% APR good for a car loan?

I’m looking for a car loan and I’m getting a lot of different quotes. I’ll probably go with the lowest APR I’ve seen so far, which is 4.5%. But before I do, I just want to check: Is an interest rate of 4.5% good?

Answer
Generally speaking, if your credit score is 700 or less, 4.5% APR is considered good. In fact, it’s close to average for a standard car loan.
If your credit score is above 750, you can likely find lower interest rates in the 2% to 3% range.
The lower the interest rate, the better it is for you and your wallet. But even if your initial car loan does not have the greatest APR, as your credit score improves, you can refinance into a lower-interest-rate loan to reduce monthly payments and/or total interest owed.
The Jerry app is a great resource for comparing loan options from multiple lenders. Jerry makes it easy by finding the best lenders at the best rates and delivering the lowest-cost options directly to your phone!
Chloe Jenkins
Answered on Nov 16, 2021
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