Is a 3.5% interest rate good for a car loan?

Would a 3.5% interest rate typically be considered good for a car loan? I was offered 3.5% for a 36-month loan, but I don’t know if it’s a good or bad offer. I just don’t have any frame of reference!

Liz Jenson · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Identifying a good car loan interest rate can be tricky since it depends largely on the individual applicant. That said, 3.5% is a good interest rate for most car loan borrowers. In general, people with average to above-average credit scores can find interest rates from 3% to 4.5% on 36-month car loans.
To give you a frame of reference, a 3.5% interest rate will typically only be available to people with credit scores between 661 and 780. While applicants with higher scores may be offered even lower rates, they won’t be available to people in a lower-credit-score group.
Alternatively, people with credit scores below 660 can usually expect interest rates ranging from 6.61% to 14.59% or higher.
MORE: What is a good credit score for a car loan?
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