What is a Good Interest Rate for Your Car Loan?

There are many factors that influence a good interest rate for your car loan, including your credit score and where you secure the loan. To help Peoria drivers better understand what interest rate is appropriate for their unique financial situations, and to make sure that they don’t overpay, Mike Murphy Ford breaks down average interest rates so that you can get a good deal! Once you’ve reviewed the average APR for new and used vehicles, we encourage you to apply for financing online to expedite the car buying process!

New and Used Car APR

Average New-Car Loan Annual Percentage Rate Average Used-Car Loan 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%

What Is a Good Car Loan Rate?

East Peoria drivers have the power to impact their car loan rates. Consider these tips before you apply for a loan:

  • Plan ahead, checking your credit history and noting the score. Remember that a higher credit score means a lower interest rate is in store.
  • Come armed with knowledge and be prepared to negotiate. Now that you understand the range of average interest rates based on specific credit scores, don’t accept offers above what you expect.
  • Pay attention to the details, as there are other factors involved in your car deal that you don’t want to ignore.

What is the Average Interest Rate on a Car Loan?

The average interest rate on a three-year car loan ranges between 3% and 4.5%. However. every driver’s situation is different, and they must adhere to their individual circumstances and preferences. Credit scores have a significant impact on car loan interest rates, as does the institution where you secure the loan. It’s also important to consider your budget and what you’re comfortable with. Our best advice is to shop around and compare car loans and their interest rates to figure out what works best for you.

Secure a Car Loan at Mike Murphy Ford

The Finance Center at Mike Murphy Ford is here to set up drivers from Pekin and beyond with competitive rates on their car loans so that they can take advantage of the Ford Edge’s towing capacity. Get in touch to learn more or to get started with the financing process!

Mike Murphy Ford 40.615803, -89.462405.