Having an understanding of what is a good interest rate for your car loan, and the role your credit rating plays in it will make the car-buy process less confusing and stressful. When you know your credit score, use this chart to see what your Annual Percentage Rate (APR) will likely be when you buy a new car in Peoria. With that knowledge, you can apply for financing, and rest assured that you’re not in for any surprises at Mike Murphy Ford.
| 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% |
Planning ahead is key in getting a good car loan rate in East Peoria and beyond. When you get your credit history, don’t just focus on the score, but also take the time to thoroughly check to make sure everything is correct. If you find incorrect information you’ll need to get your credit report fixed. It’s worth taking the time to do this because it could lead to a higher credit score, which will lead to a better car loan rate.
What is a good car loan rate? Based on the chart above, it could be anywhere between 3.17% and 13.76%. With this information, you’ll be ready to negotiate with lenders if they offer a higher interest rate. Don’t forget to also negotiate the price of your vehicle, too. It’s easy to get caught up in one negotiation and neglect the other. They’re equally important.
On a three-year car loan, the average interest rate is around 3% to 4.5%. Where you get the loan might make a difference in that rate. The easiest way to compare your car loans and interest rates is to shop around or get pre-approved and calculate the average interest rate on a car loan being offered to you in Pekin.
Now that you know what is a good interest rate on a car loan and you’ve applied for financing with Mike Murphy Ford, you’re well on your way to getting an interest rate you’ll love! Our finance team will shop around the Morton area to secure the best rate available to you. In the meantime read our car-buying tips for more information on how to buy a car and save money.
