What is a Good Interest Rate for a Car Loan?

2019 Volkswagen Jetta

Some of the top questions we get surrounding car loans are, “What is a good interest rate for a car loan, and what is the average interest rate on a car loan?” Both questions deserve quality answers, which is why at Atlantic Volkswagen near Millville, we answer your burning car loan questions. We also provide car loan tips to make the process even smoother. Contact us if you have any further questions or to start your car loan experience with us!

How Do You Get the Best Interest Rate on a Car Loan?

To go from average, to good, to the best interest rate on a car loan, you need to plan. Keep an eye on your credit score and history. A higher credit score will lower the interest rate on your car loan. What is a reasonable car loan rate? It can fall anywhere between 3.17% and 13.76%. The wide range depends on your credit score. 

If, in this instance you are offered a higher interest rate than you expected, you can negotiate. You do not have to settle right out of the gate, but you need to be reasonable based on all the factors. You also do not want to get so caught up in the offer that you lose sight of the overall deal. 

What is the Average Interest Rate on a Car Loan?

Looking to answer, “What is the average interest rate on a car loan?” We must first look at the car loan agreement. For example, on a three-year car loan, the average interest rate is approximately 3% to 4.5%. However, “average” is subjective based on your credit score. The “average” credit score interest rate differs depending on where you choose to get your car loan. Thus, do some research, shop around, and try to get pre-approved to compare before you commit.

Ways to Get a Great Price on a Car Loan

Indeed, a lower car loan rate can save Wildwood drivers money down the road. Consider these car loan tips to help you get a great price on a car loan:

  • Shopping new and used vehicle specials
  • Considering leasing vs. buying
  • Pay of your car loan early to decrease interest paid
  • Trading-in your current vehicle

Get Your Car Loan with Atlantic Volkswagen!

Our finance team wants to help Atlantic City drivers get the vehicle they want without breaking the bank. Therefore, you can apply for financing online and get pre-approved. You can also value your trade to get an estimate of how much money your current vehicle is worth, and that can be used toward your new car loan. Connect with us today to begin your new car journey!

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