What is a Good Interest Rate for a Car Loan?

Loan application

Car buyers are always looking for ways to make sure they’re not overpaying for their new or used vehicle. If you want a better understanding of the right interest rate per car loan, with your credit score in mind, the team at Lone Star Toyota of Lewisville created a helpful chart showing buyers how to get the best interest rate. See the average new and used car loans based on APR – the Annual Percentage Rate – and credit scores. When you’re ready, we can approve you for financing!

Average New and Used Car APR

Average New-Car Loan Annual Percentage Rate Average Used-Car Loan 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%
Calculating interest

How Do You Get the Best Interest Rate?

If you want to score the best interest rate, you will want to start by planning ahead. Get a copy of your credit history and take a look at the score. The higher the credit score, the lower the interest rate you can get. Be sure you’re ready to start negotiating. So what is a good car loan rate? Looking at the chart above, it can be anywhere between 3.17% and 13.76% depending on your credit score.

After looking at this chart, think about the rate that you want and get ready to negotiate if they offer you something higher than what you expected. Be careful and don’t just focus on the payment, because you can end up ignoring the rest of the deal. Read through everything and pay close attention to the details.

What is the Average Interest Rate on a Car Loan?

As an example, a three-year car loan will have an average interest rate of around 3% to 4.5%. However, there’s always a chance you will get different offers due to your credit score as well as where the loan is coming from. In the end, the easiest way to compare your car loans and interest rates is to shop around or get pre-approved.

Apply for Financing at Lone Star Toyota of Lewisville

Now that you know the answer to “what is a good interest rate for a car loan,” it’s time to visit our Flower Mound area dealership to explore your options even further. Our finance center will assist with the pre-approval process and get you behind the wheel of your dream vehicle at a reasonable rate. Contact us to compare rates, to see what comprehensive insurance covers, or to get the process started.

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1547 S. Stemmons Fwy • Lewisville, TX 75067

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Lone Star Toyota of Lewisville

1547 S. Stemmons Fwy Lewisville, TX

Phone: (469) 671-5500



Phone: (469) 671-5534

1547 S. Stemmons Fwy Lewisville, TX


Phone: (469) 470-2395

1547 S. Stemmons Fwy Lewisville, TX


Phone: (469) 671-0701

1547 S. Stemmons Fwy Lewisville, TX
33.0213337 -96.9874464
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Lone Star Toyota of Lewisville
Lone Star Toyota of Lewisville
1547 S. Stemmons Fwy
Lewisville, TX, 75067 US
(469) 671-5500
Lone Star Toyota of Lewisville 33.0213337, -96.9874464.