What Is a Good Interest Rate for a Car Loan?

It’s great to be approved for a car loan, and Suntrup Nissan tries to get every St. Louis driver who comes through our doors for auto financing,regardless of their credit situation. But how do you know if you’re getting a good rate? After all, interest rates differ by length of the loan, your credit score, and the lender. So, what is a good interest rate for a car loan? Keep reading to find the answer.

The Shorter the Loan, the Lower the Interest Rate

The length of the loan is a big factor used by creditors to determine your interest rate. Here is the average car loan interest rate by term (all numbers used below are from Q4 2021):

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

• 36 Month – 4.21%
• 48 Month – 4.31%
• 60 Month – 4.37%
• 72 Month – 4.45%

What Is a Good Interest Rate for a Car Loan for a New Car?

Did you know that loans for new cars generally carry lower interest rates than loans for used ones? That’s something to factor in when consideringwhether to buy new or used. Here’s how interest rates on new cars break out by credit score:

Average Interest Rate on a New Car Loan by Credit Score:

• 781-850 – 2.47%
• 661-780 – 3.51%
• 601-660 – 6.07%
• 501-600 – 9.41%
• 300-500 – 12.53%

What Is a Good Interest Rate for a Car Loan for a Used Car?

Interest rates for used cars tend to be higher and also differ by credit score. Here is how these rates break out:

Average Interest Rate on a Used Car Loan by Credit Score

• 781-850 – 3.61%
• 661-780 – 5.38%
• 601-660 – 9.8%
• 501-600 – 15.96%
• 300-500 – 19.87%

What Is the Average Interest Rate on a Car Loan by Lender?

We leverage our relationships with multiple lenders to get our St Louis customers the best rates possible. Here is how the range of interest rates can vary by lender:

Range of Interest Rates Offered by Lenders:

• Alliant – 3.24-18.19%
• CapitalOne – 3.99%-13.98%
• PenFed – 1.99% -18%
• PNC Bank – 2.79%-14.99%

Take Advantage of the Easy Financing at Suntrup Nissan

Our finance department is eager to get you behind the wheel of your next car and will work to make that happen, regardless of your credit situation. So, come in and talk to us about your options. If you’d like to learn more, check out our article onhow to improve your credit score. We’re conveniently located near both Jefferson County and St Charles, so drop by or contact us today!