What is a Good Interest Rate for a Car Loan?

interest rate

Many Blue Ash car shoppers often ask, “What is a good interest rate for a car loan?” If you’re trying to avoid overpaying for your new Mercedes-Benz vehicle, our chart breaks down how to get the best interest rate possible. Learn what is the average interest rate on a car loan based on credit scores and the Annual Percentage Rate (APR). Then our finance team can approve you for financing in no time!

New and Used Car APR

Average Credit Score - New Car

APR

Average Credit Score - Used Car

3.17%

781-850

3.8%
4.03%

661-780

5.48%
6.79%

601-660

10.1%
10.98%

501-600

16.27%
13.76%

300-500

19.32%

How to Get the Best Interest Rate?

If you’re looking to get the best interest rate possible in Montgomery, be prepared, and plan ahead. This means starting with checking your credit history. The higher the score you have, the lower the interest rate you qualify for. What is a good car loan rate? Based on the chart above, that’s anywhere between 3.17% and 13.76%, depending on your credit score and history.

After exploring this chart, plan the rate you want and be prepared to negotiate if your offer is not what you expected. Don’t just focus on the interest rate in the offer, pay close attention to all of the details.

What is the Average Interest Rate on a Car Loan?

If you opt for a three-year car loan, the average interest rate is around 3% to 4.5%. However, you can get an offer that’s different due to your credit score and where you’re obtaining the auto loan from near Sharonville. The best thing to do is compare your car loans and interest rates and shop around or get pre-approved and compare that way.

Apply for Financing at Mercedes-Benz of Cincinnati

Now that you know what is the average interest rate on a car loan, our finance center is here in Cincinnati to help you through the car buying process. It’s our goal to get you behind the wheel of your dream vehicle at a price that won’t break the bank. Contact us to compare rates, if you have any questions about getting a lease vs. buying, to learn what’s considered good mileage on a used car, or to get the process started today. 

Mercedes-Benz of Cincinnati 39.2143426, -84.3599992.