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What is a Good Interest Rate for a Car Loan?

Finance Paperwork

We understand that Arlington car shoppers want to avoid overpaying when buying a new vehicle, which is why so many ask, “What is a good interest rate for a car loan?” The answer to this question depends on a few factors, including your credit score. To provide our shoppers with a better understanding of the right interest rate per car loan, we’ve created a chart in addition to explaining how to get the best interest rate. Shop with complete confidence at Alexandria Volkswagen, and find the car of your dreams at a price you can afford.

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%

Securing a Great Interest Rate

Planning ahead is the first step to take when trying to secure the best possible interest rate. Check your credit history as well as your credit score. Keep in mind that the higher the credit score, the lower the interest rate. Review the chart above so that you will be ready to negotiate. So what is a good car loan rate? Because this really depends on your credit score, it could be anywhere between 3.17% and 13.76%.

Before signing on the dotted line, be sure to take a look at the entire offer you have been given. You don’t want to focus solely on the payment and ignore the rest of the deal.

What is the Average Interest Rate on a Car Loan?

You may also be wondering, “What is the average interest rate on a car loan?” For example, on a three-year car loan, the average interest rate ranges from around 3% to 4.5%. Remember that the offer you receive can vary based on your credit score in addition to where you secure the loan. Getting pre-approved makes it easy to compare the offers you receive so that you can find the best deal in the Washington DC area.

Financing is Hassle-Free at Alexandria Volkswagen

When you are ready to drive home to Springfield in a brand new vehicle, the finance experts at Alexandria Volkswagen can make your dream car a reality. It is our goal to help you secure some of the most competitive rates in the Alexandria area. If you have any questions, do not hesitate to reach out to us at your convenience. We look forward to getting you behind the wheel of a vehicle you will love for many years to come. Is now the right time to buy a car? We’ve got some more facts just waiting for you to discover.


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107 W Glebe Rd, Alexandria, VA, 22305
Alexandria Volkswagen 38.8365955, -77.0597743.