Is 4.99% a good car loan rate? (2024)

FAQs

Is 4.99 interest rate good for a car? ›

A 72-month loan for a car is a long-term loan, and long-term loans typically come with higher interest. While long-term loans translate to lower monthly payments, they result in more interest paid over the life of the loan. With that said, an interest rate of around 5% for a 72-month auto loan is considered ideal.

The current average APR rate for a person with a 781-850 credit score when buying a new car is 4.75% and 5.99 when buying a used car. It's possible to get a credit card with no credit, but you need to know which types of accounts to apply for (and which applications to avoid as well).

Car Loan APRs by Credit Score

Excellent (750 - 850): 2.96 percent for new, 3.68 percent for used. Good (700 - 749): 4.03 percent for new, 5.53 percent for used. Fair (650 - 699): 6.75 percent for new, 10.33 percent for used. Poor (450 - 649): 12.84 percent for new, 20.43 percent for used.

Deep subprime: 300-500. 14.78%. 21.55%. Source: Experian Information Solutions. Based on Experian data, if you have a 500 credit score, you might see rates on a used car of about 21.55%, compared with 14.12% for a credit score of 650.

Average Auto Loan Interest Rates. The average auto loan interest rates across all credit profiles range from 5.64% to 14.78% for new cars and 7.66% to 21.55% for used cars.

Yes, just like the price of the vehicle, the interest rate is negotiable. Dealers may not offer you the lowest rate that you qualify for.

An interest rate under 5% is a great rate for a 72-month auto loan. However, the best loan offers are only available to borrowers who have the best credit scores and payment histories.

Is 4.5 a high interest rate for a car? ›

The average interest rate on a three-year loan is between 3% and 4.5%, but it will vary depending on your credit score and other factors. The best way to determine if you're getting a good deal is to get pre-approved and compare your approval interest rates.

For a buyer with subprime credit, a rate of 5.9% could be a good deal. That's because our records show subprime car loans often come in around 13%. If you have a credit score under 670, odds are you'll need to work with a dealer that specializes in bad credit or take advantage of financing programs for subprime credit.

The average ranges from 3% to 4.5% for new cars—partly because new car buyers tend to have better-than-average credit. But the average used car loan interest rate is significantly higher, at roughly 8.5%. You may receive a different offer depending on your credit score and the lender.