An auto loan’s interest rate will depend largely on your credit score. Those with a credit score between 781 and 850 saw an average new car interest rate of 2.34% in 2021.
|Credit score range||Average interest rate|
|300 to 500||14.59%|
|501 to 600||11.03%|
|601 to 660||6.61%|
|661 and 780||3.48%|
In respect to this, is 1.9 APR on a car good?
Dealerships will often advertise very good interest rates on new cars: 2.9%, 1.9%, sometimes even 0%. What they leave in the fine print is that these rates are only available to buyers with the best credit—that may mean a FICO score of 750 or better.
Then, is 3% on a car loan good?
According to Middletown Honda, depending on your credit score, good car loan interest rates can range anywhere from 3 percent to almost 14 percent. However, most three-year car loans for someone with an average to above-average credit score come with a roughly 3 percent to 4.5 percent interest rate.
What is a good APR for a car 2021?
The average new car’s interest rate in 2021 is
|Credit score category||Average loan APR for new car||Average loan APR for used car|
|Super Prime (781 to 850)||2.34%||3.66%|
The national average for US auto loan interest rates is 5.27% on 60 month loans.
The reason for the seemingly high rates goes beyond corporate profit or greed: It’s about risk to the lender. … For banks and other card issuers, credit cards are decidedly risky because lots of people pay late or don’t pay at all. So issuers charge high interest rates to compensate for that risk.