What is a good auto loan rate
What Is a Good Auto Loan Rate? A Guide to Finding Competitive Interest Rates Check out our FREE Auto Loan and Car Payment Calculator When financing a car, securing a good auto loan rate can save you thousands of dollars over the life of the loan. But what constitutes a "good" auto loan rate depends on factors such as your credit score, the type of vehicle you're buying, and current market trends. Here's everything you need to know about identifying and securing a favorable auto loan rate. What Is Considered a Good Auto Loan Rate in 2025? As of March 2025, average auto loan rates vary based on credit score and whether you're purchasing a new or used vehicle. Below are some benchmarks for what can be considered a "good" rate: New Cars : The average interest rate is 7.2% APR, but borrowers with excellent credit (781–850) can secure rates as low as 5.08% 1 2 . Used Cars : The average interest rate is 11.3% APR, with top-tier borrowers receiving rates aro...