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's an average interest rate on a car loan?
What would be considered an average interest rate for a car loan? I want to have some idea of what’s reasonable before I start making any decisions.
Liz Jenson · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Finances can be tricky, especially when it comes to car loans. While the average interest rate for car loans is 4.09% for new cars and 8.66% for used cars, the rate you can expect will depend on your financial situation.
Car loan interest rates are largely based on your credit score and existing debt, so your loan offers will reflect your specific situation. To give you a frame of reference, here are the average interest rates based on credit score for new and used cars:
- 781 to 850: 2.34% new, 3.66% used
- 661 to 780: 3.48% new, 5.49% used
- 601 to 660: 6.61% new, 10.49% used
- 501 to 600: 11.03% new, 17.11% used
- 300 to 500: 14.59% new, 20.58% used
As you can see, the average interest rates vary drastically from one credit score to the next. The best way to find out what a fair interest rate is for you is to shop around to get quotes from several lenders. As you compare rates, you’ll be able to what’s good, what’s average, and what’s bad.
Once you buy your new car, make sure you’re getting the best rate on the coverage you need with
Jerry
! A licensed broker, the Jerry app helps users save an average of $879 a year on car insurance. Just download the app, answer a few questions, and Jerry will send you personalized quotes from top providers like Progressive and Allstate for free.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 for Your Car
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
