PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Loans
Car Loan
Compare Car Loans with Jerry
Jerry's Expert Advice
Car Loan Guides
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
What is the average car loan APR?
I’m shopping around for a car loan on a Toyota Highlander, but I’m not sure what a good APR is. I don’t want to overpay on my car loan. How high is the average car loan APR?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
A new car is an exciting investment! Unfortunately, learning about
car loans
and average APRs isn’t nearly as fun as actually buying the car. But try not to worry—looking for the information is half the battle!It’s hard to determine exact average APRs since they depend on so many factors, but these are the average APRs based on credit scores for November 2021:
- 300-500: 14.59%
- 501-600: 11.03%
- 601-660: 6.61%
- 661-780: 3.48%
- 780+: 2.34%
Remember, your APR will depend on your lender and your overall loan application. Aside from credit score, your lender will take these factors into account when setting your APR:
- Credit history
- Debt-to-income ratio
- Income
- Loan term and loan balance
The lender weighs each of these factors separately to determine a car loan APR. However, credit score and the length of the loan are usually the most crucial aspects of getting a car loan.
Since loan-term plays a big role in the APR, you also have some control in setting it! In general, longer terms mean you’ll pay more interest, but your monthly payments will be lower. Alternatively, shorter terms mean you’ll pay less in interest, but your monthly rates will be higher. The best option will depend on you and your personal circumstances!
If you’d like some extra cash to make your monthly payments, start saving on car insurance with
Jerry
. A licensed broker, the Jerry app helps you compare personalized quotes from over 50 top providers like Progressive and Allstate in minutes. When you find a better rate, Jerry can help you switch policies and even help cancel your old one!View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
