What is a Good Interest Rate for Your Car Loan?

hand typing numbers on calculator

Many car buyers are trying to make sure they don’t overpay in interest and want to get the best rate possible. Keeping your credit score in mind, the finance experts at Galaxy Toyota near Tinton Falls made a chart and broke down how to get the best interest rate. Learn more about the average new and used car loans based on different credit scores and the average APR (Annual Percentage Rate). Once you learn this, you’re well on your way to getting approved for financing!

New and Used Car APR

Average Credit Score for New Car

Annual Percentage Rate

Average Credit Score for Used Car

Annual Percentage Rate


3.17% 781-850



4.03% 661-780



6.79% 601-660



10.98% 501-600



13.76% 300-500


How to Get the Best Interest Rate

Want to get an excellent interest rate? The first step is to take a look at your credit history to find your credit score. As many Freehold and Long Branch car buyers know, the higher your credit score, the better interest rate you will get. Depending on where your credit score falls, be ready to start negotiating. What is a good car loan rate? Looking at the information above, it can be between 3.17% and 13.76% depending on your credit score. Negotiating helps if you end up with an interest rate that’s a little higher than expected. It’s best to not focus on the payment and ignore the rest of the deal. It’s essential to always pay close attention to all of the details.

What is the Average Interest Rate on a Car Loan?

With three-year car loans, the average interest rate is around 3% to 4.5%. However, you may get a different interest rate because of your credit score. Want to get the best rate possible? It all comes down to shopping around or getting pre-approved for a comparison.

Apply for Financing at Galaxy Toyota

Our finance center is standing by to help with your pre-approval process and get you behind the wheel of your new Toyota vehicle at a reasonable rate. Give us a call with any questions or to find out what’s an ideal credit score to finance a car. We strive to help you through the car-buying process in a stress-free and hassle-free environment.

Galaxy Toyota 40.2912213, -74.0394889.