What is a reasonable APR for a car loan?

I’m in the market for a new car, but I’ve only ever owned used vehicles that were paid for with cash, and I’m not sure what’s considered a good deal. What is a reasonable APR for a car loan?

Shopping for a new car is exciting! And you’re doing the right thing by doing your research beforehand.
However, what’s considered a reasonable APR on a car loan varies from person to person. The rate you will qualify for depends on your credit score, income, and debt-to-income ratio, among other factors.
Here’s a typical breakdown of the average interest rate by credit score:
  • 300 to 500: 14.59%
  • 501 to 600: 11.03%
  • 601 to 660: 6.61%
  • 661 to 780: 3.48%
  • 781 to 850: 2.34%
To ensure you’re getting the best rate, you should shop around and compare offers from multiple lenders including:
  • National and local banks
  • Credit unions
  • Online lenders
Finally, before you purchase your new vehicle, you’ll need car insurance. Shop around for this, as well! It’s the only way to ensure you’re getting the best rate. Jerry makes it quick and easy.
Jerry is an insurance comparison app that shops for low prices with over 50 different insurance companies for free. You will get quotes in seconds, can make changes at any time, and if you ever have any questions, agents are just a text away!
Jack Walsh
Answered on Dec 10, 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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