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?
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
- 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!
MORE: How to buy a new car
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.
Read advice from car experts at Jerry
Browse by topics
What others are asking
How do you find your car insurance policy number?
It’s been a while since I’ve had to look at my insurance, but I’m about to start driving frequently again. How do I find my policy number so I can check my coverage? I also forgot where I last placed my insurance card.
Nov 10, 2021
What do you need to get a car loan?
I’m in the market for a new car after my last one finally gave out on me. I want to buy a new one, but I'm a little short on cash. What exactly do I need to do if I want to get a car loan?
Nov 11, 2021
How to get out of a cosigned car loan?
I cosigned for my brother’s car loan and he’s been acting really irresponsibly lately. I’m really worried he won’t make his payments. I want to help, but I also don’t want to ruin my credit. How do I get out of this cosigned car loan?
Nov 11, 2021