What is a reasonable interest rate for a car loan?

If I get a 48-month car loan, what would be a reasonable interest rate? I need to take out a car loan, but I don’t know much about loans. I’m worried that I’ll get myself into debt with an unreasonable interest rate.

A reasonable interest rate for a 48-month car loan differs depending on your credit score. On average, the current interest rate for a 48-month new car loan is 3.89%. If you have a credit score below 700, you might get an interest rate closer to 4.8%.
To get a lower interest rate on your loan, you can do a few different things:
  • Get a cosigner.
  • Boost your credit score as much as you can.
  • Make a large downpayment.
  • Opt for a shorter repayment period if you can afford it. Your choice of a 48-month repayment period will already get you a pretty good rate, but a 36-month loan would probably offer even lower interest rates.
  • Shop around and talk to different lenders about the rates they have available. Some lenders will offer you better terms than others do.
While you’re shopping around for a car loan, try shopping around for car insurance, too! The Jerry app makes it easy to find the best rates out there for your new car. Just download the app and answer some quick questions to see a comprehensive list of available insurance policies that work for you!
Liz Jenson
Answered on Nov 17, 2021

Did this answer help you?

Ask us a question by email and we will respond within a few days.

Have a different question?

You can meet us at our office and discuss the details of your question.
Let Jerry’s experts help you find savings on your car insurance!
No long forms or spam · Get quotes from 40+ carriers
Find insurance savings (100% Free)
rating primary
4.7/5 Rating on App Store

Easiest way to compare and buy car insurance

No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
Find insurance savings — it's 100% free