What Is a Good Interest Rate for a Car Loan?
What is a good interest rate for a car loan in the US—APR by credit tier and how to get the best rate.
A good interest rate for a car loan in the U.S. depends on your credit—prime borrowers often get the best rates; subprime pays more. Here's what is a good interest rate for a car loan and how to get it.
TL;DR Good rate = at or below market for your credit. Prime (720+) often gets best rates; rates rise as credit drops. Shop banks, credit unions, and dealer—compare APR, not just payment. Use autopremo.com payment calculator to see how rate affects payment and total interest. Use autopremo.com.Rate by Credit Tier
Prime (720+): often best APRs. Near-prime (660–719): higher. Subprime (below 660): highest. Shop multiple lenders to get the best rate for your tier. Use autopremo.com payment calculator to see payment at different rates. Get your numbers at autopremo.com.
Shop Rate, Not Just Payment
Dealer may quote "payment" without disclosing marked-up APR. Get APR in writing and compare to bank/credit union. Use autopremo.com so you have OTD and can shop rate separately. See payment at autopremo.com.
Agree on OTD First
Negotiate out-the-door price first, then shop rate. Don't let rate and price get bundled so the dealer hides a markup. Use autopremo.com OTD calculator. Check at autopremo.com.
Bottom Line
Good rate = at or below market for your credit. Shop lenders, compare APR, agree on OTD first. Use autopremo.com payment calculator so you see how rate affects total cost.