what is a good interest rate for a car

The interest rate for a car loan can vary based on several factors, including your credit score, income, and the type of vehicle you are purchasing. According to recent data, the average auto loan interest rate for new cars in the second quarter of 2023 was around 6.63%, while for used cars, it was approximately 11.38% . These rates can fluctuate based on your credit score, with individuals having higher credit scores generally receiving lower interest rates. For example, those with credit scores above 780 were able to secure new vehicle loans for an average rate of 2.47% . On the other hand, individuals with lower credit scores may face higher interest rates, with deep subprime borrowers having an average APR of 14.08% . Its important to note that these rates are averages, and individual rates can vary based on personal factors and the lender. Shopping around and comparing offers from different lenders can help you find a competitive interest rate for your car loan. Additionally, taking steps to improve your credit score, such as paying off existing debt and making on-time payments, can potentially help you secure a more favorable interest rate.