Good Interest Rates For A Car Loan

Deer Park car shoppers that are not only savvy but money conscious know to look for the best car interest rates they can get. But, what is a good interest rate for a car loan? And how do you make sure you’re getting a great deal on a new or used car? 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. Once you’ve found that you’re ready to let Bayway Chrysler Dodge Jeep Ram help you in the car buying process, simply apply for financing online from the comfort of our own home.

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:

Average Car Loan Interest Rate by Length of the Loan:

• 36 Month – 6.06%
• 48 Month – 6.09%
• 60 Month – 6.1%

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 – 3.84%
• 661–780 – 4.9%
• 601–660 – 7.25%
• 501–600 – 10.00%
• 300–500 – 12.93%

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

Used car loans typically require a smaller down payment 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 – 3.69%
• 661–780 – 5.47%
• 601–660 – 9.81%
• 501–600 – 15.86%
• 300–500 – 19.81%

It’s Good to Shop Multiple Lenders

Experienced Houston drivers know that one way to find the best car loan interest rates is to talk to several lenders, as they all offer different rates. At Bayway Chrysler Dodge Jeep Ram, 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:

Average Car Loan Interest Rates Offered by Lenders:

• Bank of America – 6.29%
• BMO Harris Bank – 7.9%
• Chase – 7.14%

Apply for Financing at Bayway Chrysler Dodge Jeep Ram of Pasadena

We want all of our customers to drive, regardless of their credit situation. Contact us today to schedule a test drive of any of our vehicles, to make sure that you’re getting the one that works best for you. Once you find your dream car, you can head back to League City in no time.