What Is a Good Interest Rate for a Car Loan?

You’ve carefully researched the kind of car you want to buy, you’ve read all of the reviews and consumer reports, you’ve compared numerous different brands and models. You even searched all over the greater Freehold area to find the best deal on the car you want. But what about financing? That requires some research, too! Do you know what the average interest rate on a car loan is? What is a good car loan rate? The finance department at Honda Universe of Lakewood is here to help.

What is the Average Interest Rate on a Car Loan?

The average interest rate on a car loan in 2019 was 4.21% on a five-year loan. But that statistic can be misleading. The actual rate differs, based on a couple of different factors. What is a good car loan rate depends on the length of the car loan, whether the car is new or used, your credit score, and which lender is offering you the loan. We break down the averages below so our Toms River customers can have an idea of what is a good interest rate for a car loan.

Average Interest Rate on a Car Loan by Credit Score (on a 60-month loan)

• 500-589 – 15.24%
• 590-619 – 14.06%
• 620-659 – 9.72%
• 660-689 – 7.02%
• 690-719 – 4.95%
• 720-850 – 3.60%

Average Interest Rate on a Car Loan by Length of the Loan

• 36 Month – 3.71%(new) 4.11%(used)
• 48 Month – 3.81%(new) 4.18%(used)
• 60 Month – 3.93%(new) 3.98%(used)
• 72 Month – 3.78%(new) 3.65%(used)

Let the Finance Department at Honda Universe Help

Our finance experts know what a good car loan rate is and how to get it, so they’ll be happy to inform you about all kinds of factors that may affect your rate. For instance, did you know that rates from national auto lenders like Honda are usually lower than rates you can get from other lending institutions? You can check out Honda finance offers here. We make getting a car loan so easy that you can even apply for financing online. We’re just a short drive away from Jackson, so drop by or contact us today!