What's a high interest rate for a car loan?

What’s an average car loan interest rate? I'm getting a new car and have been seeing a ton of different numbers. I feel lost.

How exciting! Getting a new car is a great feeling, but it’s normal to see a wide variety of interest rates when looking for a car loan.
What’s too high for a loan depends on your financial situation and your credit score. If you have excellent or exceptional credit, paying anything over 4 to 5% is likely too high. However, if you have poor credit, anything higher than 20% is too high.
Since you’ve been seeing a bunch of different numbers, you should begin comparison shopping. As you start gathering rates from different lenders, you should see an average interest rate. Within that, you’ll see what’s consider high for your credit score and what’s low.
If you do find a great interest rate, be sure to read the terms and conditions before signing. Even if an interest rate is good, you want to be sure you’re happy with the loan agreement. If you have any questions, you’ll want to have them addressed before signing as well.
After finding the loan that’s best for you, shop around for your car insurance too! Almost every lender requires that vehicles carry a specific amount of insurance, so you’ll want to be sure you’re getting the best rate. You can request car insurance quotes from multiple companies yourself or use Jerry. Jerry is a car insurance comparison app that finds personalized quotes for you, ensuring you’re always getting the best rates!
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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