What Is a Good Interest Rate for a Car Loan?

Savvy New Bedford car shoppers tend to look for the best car interest rates they can get. But, what is a good interest rate for a car loan? Our finance department wants you to make an informed decision when buying your next new car. So, we delve into that topic below and break out the average car loan interest rate by several factors.

The Shortest Terms Have the Best Car Loan Interest Rates

One of the surest ways to get the best car loan interest rates available to you is to opt for the shortest term you can afford. That means bigger payments, but fewer of them, and less paid in interest over time. Here is the average car loan interest rate by term (all numbers used below are from Q1 2022):

Average Car Loan Interest Rate by Length of the Loan:

• 36 Month – 3.86%
• 48 Month – 3.93%
• 60 Month – 4.03% 
• 72 Month – 4.12%

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

Many drivers aren’t aware that new car loans generally carry lower interest rates than loans on used cars. That is something to take into consideration when deciding to buy new vs. used. Here’s how interest rates on new cars break out by credit score:

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

• 781–850 – 2.40%
• 661–780 – 3.56%
• 601–660 – 6.70%
• 501–600 – 10.87%
• 300–500 – 14.76%

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

Used car loans typically require a smaller downpayment and have a lower sticker price, but, as we mentioned, carry a higher interest rate. Here is how these rates break out by credit score:

Average Car Loan Interest Rate on a Used Car Loan by Credit Score

• 781–850 – 3.71%
• 661–780 – 5.58%
• 601–660 – 10.48%
• 501–600 – 17.29%
• 300–500 – 20.99%

It’s Good to Shop Multiple Lenders

Experienced Dartmouth drivers know that one way to find best car loan interest rates is to talk to several lenders, as they all offer different rates. At Alden Mazda, we do that work for you by leveraging our relationships with multiple lenders to get you the best rate possible. Here is how the range of interest rates can vary by lender:

Car Loan Interest Rates Offered by Lenders:

• Bank of America – Starts at 5.04%
• Navy Federal – as low as 4.54%
• USBank – as low as 7.36%
• PNC Bank – Starts at 5.24%

Apply for Financing at Alden Mazda of Fairhaven

We want all of our customers to drive, regardless of their credit situation. That’s why we make the whole process as simple as possible. You can even get approved for financing before you leave the house. So talk with our finance managers about your options. We’re conveniently located near Fall River. Drop by or contact us today!