What interest rate should I expect for a car loan?

I just moved back to the United States after working in London for a few years. I need to purchase a car. I’m not sure if I’m buying new or used yet, but what interest rate should I expect to be offered on a car loan? I have a credit score of 790.

Answer
I hope you enjoyed your time in London, and I’m sure your family will appreciate having you back!
In general, with a superprime credit score of 790, you should expect an interest rate around 2.34% for a new car loan and 3.66% for a used car loan. However, these are just the average rates for borrowers with a credit score between 781 and 850, so your actual rate could vary.
When determining rates, your credit score and history are weighted heavily, but lenders also consider:
  • Income and employment history
  • Debt-to-income ratio
  • Amount borrowed
  • Term length
If you want to ensure you’re receiving the best rate, you should be sure to make a sizeable down payment and compare offers from many different lenders. Get quotes from:
  • Local and national banks
  • Credit unions
  • Dealerships
  • Online lenders
Finally, once you have found a vehicle and been approved for a loan, you’ll need to have car insurance before driving off the lot. If you want to make purchasing a new policy stress-free, use Jerry.
After providing you with a comprehensive analysis of the best policies across more than 50 providers, Jerry will handle the phone calls, paperwork, and renewals for your top pick so that you don’t have to. And if you ever have any questions, agents are just a text away.
Jack Walsh
Answered on Dec 14, 2021
Jack is an insurance specialist and writer living in Buffalo, New York. He has a BA from Union College and worked as an insurance agent with Jerry before joining our content team. He enjoys using data and research to break down complex subjects and convey a story. In his spare time, Jack enjoys cycling, cooking, and exploring Buffalo’s beautiful waterfront.
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