Get Directions

3915 S Broadway, Minot, ND, 58701

What is a Good Interest Rate for a Car Loan?

Auto financing professional using a calculator while looking at papers

If you’re a car buyer, you’re probably thinking that underpaying is always better than overpaying, and we don’t blame you. It’s understandable, then, that you’d want to know what is a good interest rate for a car loan. The truth is, there is no “one-size-fits-all” interest rate that’s considered good when applying for automotive financing. Rather, there are many factors to consider, like your creditworthiness and where you apply for a loan. Ultimately, if you’re interested in seeing how your loan rate compares, the best course of action is to study average car loan interest rates by credit score. That said, let’s dive into those figures before you apply for financing!

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 Do You Get the Best Interest Rate?

Getting the best interest rate given your unique needs is all about planning ahead. Here are some steps to take when doing so:

  • Make sure you check your credit history and credit score (the higher your score, the lower your rate).
  • Be ready to negotiate.
  • Plan for the rate you think is fair after viewing the above chart and be ready to ask for something higher if you’re not happy with what you’re given.
  • Don’t focus just on the interest rate. Think about other factors like trade-in-price and down-payment.
  • Pay attention to the details of the deal.

What is the Average Interest Rate on a Car Loan?

On a standard three-year auto loan, the average interest rate hovers between 3% to 4.5% depending on a myriad of factors. The lending institution that offers you a loan and your credit score will also factor into where in that continuum your proposed rate falls. Want the best rate possible? Do your homework and shop around from a variety of lenders until you get a rate that you think is fair! Feel free to contact our finance department with questions. too!

Apply for Financing at Ryan Nissan

Now that you have an answer to the question, “What is a good car loan rate,” you’re ready to get approved for an auto loan that will give you access to the vehicle of your dreams! Our finance professionals can help you with the pre-approval process! Contact us to learn more about our unique financing process or to apply for financing! You can also check out our payment calculator to see how different interest rates could affect your monthly payments, or explore other finance FAQs like “what is Gap insurance?“. Whatever you do, we’re here to make it easier here at Ryan Nissan!

More From Ryan Nissan

  • What 2023 Looks Like for the Nissan Frontier

    The Nissan Frontier is back for 2023, bringing with it all the fun and capability that a midsize pickup can offer. The 2023 model will kick off the second year of the Frontier’s third generation, and it receives some small upgrades despite being completely overhauled in 2022. Everything that makes the Frontier great stayed, like…

  • 10 Things We Love About the 2023 Nissan Pathfinder

    As a Nissan dealership, you probably assume we love every vehicle that Nissan makes––and you’d be right because we do. That being said, there are still certain things about each model that really stand out to us and grab our attention. We could make a list like this about every vehicle we sell because there…

  • What You Need to Know About the 2023 Nissan Rogue

    The Nissan Rogue is a stunning compact crossover that combines some of the power and capabilities expected of an SUV with the look and feel of a sophisticated vehicle. At a great price point, it’s no wonder that the Rogue is so popular and that the upcoming 2023 is already getting drivers’ attention. Drivers who…

Contact Us
Ryan Nissan 48.1939275, -101.2948818.