What is a good car loan rate right now?

What is a good car loan rate? I’m trying to find a car loan with really good terms, but I’m not sure where to start.

Answer
It’s great you’re doing research first! In general, a good car loan rate right now would be 2.49%. Some lenders will even offer 0% APR! However, there are a lot of factors affecting loan rates, especially credit scores.
To give you a better idea of your credit score’s impact, here are the average interest rates for a 60-month car loan currently:
  • 750+: 6.12% for a new car, 6.37% for a used car
  • 700-749: 9.63% new, 9.88% used
  • 600-699: 14.69% new, 14.94% used
  • 451-599: 17.66% new, 17.91% used
Your credit score isn’t the only factor, though. There are other things you can do to score a lower rate, such as:
  • Get a car loan with a shorter repayment period. More lenders, for example, will offer 2.5% to 4% APR for 36-month car loans than for 60-month car loans.
  • Make a large downpayment on your car. Lenders usually offer better terms to borrowers who can put a larger amount down.
  • Shop around to learn more about your options with your current credit score and income. Get quotes from multiple lenders so that you know more about the average rates and terms available to you!
While you’re shopping around for a car loan, you can also shop for a better rate on your car insurance policy. The Jerry app makes this easy by collecting the quotes for you. Just download the app and answer some questions about yourself and your vehicle to learn about your insurance options. The average Jerry user saves $879 per year!
Liz Jenson
Answered on Nov 17, 2021
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