What is a Good Interest Rate for Your Car Loan?

Car Loan

 

Drivers in Corona want a good interest rate on a car loan so they don’t overpay. It’s important to keep an eye on your credit score, as this has a significant impact on your overall interest rate. So, what is a good interest rate for a car loan? The experts at BMW of Murrieta have broken the annual percentage rate for both new and used cars below. If you have any other questions about interest rates and auto financing, feel free to contact us!

New and Used Car APR

 

Average Credit Score for New Car Annual Percentage Rate Average Credit Score for Used Car Annual Percentage Rate
781-850 3.17% 781-850 3.8%
661-780 4.03% 661-780 5.48%
601-660 6.79% 601-660 10.1%
501-600 10.98% 501-600 16.27%
300-500 13.76% 300-500 19.32%

 

How To Get the Best Interest Rate?

It’s important to plan well in advance of purchasing your new ride for Riverside travels, as this allows you to build your credit before you apply for financing. Credit score significantly impacts the interest rate you pay around Murrieta, as the higher your credit score, the lower the interest rate. 

It’s also important to negotiate with your Murrieta dealership until you’re comfortable with the interest rate. So, what is a good interest rate for a car loan? A good interest rate for a new vehicle could be anywhere between 3.17% and 13.76% — whether you land on the low or high end of this spectrum is entirely dependent on your overall credit score. If you took a look at the above chart, and the dealership offers you a higher interest rate, you can negotiate until you receive an interest rate that fits your budget and lifestyle. 

Average Interest Rate On a Car Loan

The average interest rate on a car loan is anywhere from 3% to 4.5% on a 36-month loan. However, your interest rate will vary depending on your credit score and where you decide to get the loan. It’s best to apply to a few different lenders so you can choose the one with the best interest rate. 

Find Your Next Vehicle at BMW of Murrieta!

Now that you know what a good interest rate is on a car loan, come stop by BMW of Murrieta to begin searching for your next vehicle! If you still have questions about interest rates, be sure to visit our finance center. While you’re here, you can check out our wide range of new vehicles near Ontario!

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