What is a typical car loan interest rate?

What is a normal interest rate for a car loan? I'm looking into getting one and I don't want to get scammed.

Answer
Taking out a car loan is a big step, so it makes sense you want to get the best deal and avoid getting scammed.
There isn’t necessarily a typical loan interest rate. Rates vary depending on your credit score and financial stability. However, I can tell you what’s average.
Average auto loan interest rates are:
  • 4.09% for new cars
  • 8.66% for used cars
If you have an exceptional credit score, you can likely get an interest rate under 3%. If you have a lower credit score, you can expect a higher interest rate as you are seen as a less favorable borrower.
Terms and conditions will vary by lender. So to ensure you’re getting the best rate, shop around. If one lender is offering you unfavorable rates, move on—another may offer something better!
That said, be sure you read over the fine print before signing your loan contract. Understanding the terms and conditions is one of the best ways to avoid getting scammed.
To save even more money on car expenses, also shop around for car insurance. Jerry makes it easy!
A licensed broker, Jerry does all the hard work of finding cheap quotes from the top name-brand insurance companies and buying new car insurance. Jerry will even help you cancel your old policy.
Emily Maracle
Answered on Oct 26, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
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