Is an 8% interest rate good for a car loan?

I have been shopping for a car loan here and there because my old car died. The best I can find is an 8% interest rate. Is this good?

Eric Schad · Answered on Oct 25, 2021
Reviewed by Shannon Martin, Licensed Insurance Agent.
If your credit score is in the 600 to 660 range, a car loan with an interest rate of 8% is good!
However, if your score is higher, then an 8% interest rate is on the expensive side.
The average interest rate on a 60-month car loan as of September 2021 is 3.81%. So, an 8% interest rate is high by comparison.
To help calculate what you should be paying for your credit score, here are the averages for super-prime and subprime credit scores:
  • Borrowers with super-prime credit (780+) can get a loan as low as 2.34%
  • While deep subprime borrowers (500 or less) have an average interest rate of 14.59%
If you’re approved for a car loan, don’t forget about your car insurance. Lenders require financed cars to have full coverage car insurance, so make sure to check out the Jerry app to compare quotes from over 50 top insurers so you get the best rate.
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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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