What is a Good Interest Rate for Your Car Loan?
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At Jim Hudson Ford, you will always receive a competitive APR rate on new and used car loans. However, the rates we can approve for Columbia-area drivers are dependent on your credit score and credit history. The chart below will show the average interest rates and help you decide what is a good car loan rate.
New and Used Car APR
|
Average Credit Score for New Car |
Annual Percentage Rate |
Average Credit Score for Used Car |
Annual Percentage Rate |
|
781-850 |
3.17% |
781-850 |
3.8% |
|
661-780 |
4.03% |
661-780 |
5.48% |
|
601-660 |
6.79% |
601-660 |
10.1% |
|
501-600 |
10.98% |
501-600 |
16.27% |
|
300-500 |
13.76% |
300-500 |
19.32% |
Planning Ahead to Get the Best APR
Federal law allows you to receive a free credit report each year from the top credit rating agencies. Depending on the results, and how in a rush you are to purchase, you may want to build your credit up before purchasing a new Ford vehicle. You may also find inaccuracies and issues that you can rectify before applying for financing that can boost your credit.
Once you’re satisfied with your credit, looking at the chart above, a good car loan could be anywhere between 3.17% and 13.76%. Now you’re prepared to negotiate a good rate for yourself.
What is the Average Interest Rate on a Car Loan?
On a three-year car loan, the average interest rate is around 3% to 4.5%. Besides what you already know about credit scores, each lender will have slightly different rates so it pays to shop around. Just make sure you don’t have your credit pulled several times by different lenders as that might cause your credit to take a temporary hit.
Apply for Financing at Jim Hudson Ford
Learn more about Ford Credit financing options and your options at Jim Hudson Ford. We can walk you through everything from trading in a car currently being financed and how to remove a cosigner from an auto loan to our current offers & incentives at our Irmo-area Ford dealership.