What is a Good Interest Rate on a Car Loan?

January 4th, 2019 by

Financing Expert Using Calculator
Looking to avoid paying too much on your car loan? Looking to get a good interest rate on your car loan? MINI of Santa Monica is here to help! Of course, your monthly car loan and your interest rate depends on your credit score. Fortunately, the team at MINI of Santa Monica will break it down. Read more to learn the average loans for new and used cars based on your credit score and your Annual Percentage Rate (APR). When you’re all set, apply for financing to get a great deal on your next MINI.

New Car APR

Your Annual Percentage Rate (APR) is your annual rate charged for borrowing money. Put simply, it is your annual interest rate with extra included costs. You’ll note that in our handy and easy-to-navigate charts, your Annual Percentage Rate is lower for new car loans than used car loans.

Average New Car Loan Annual Percentage Rate
781-850 3.17%
661-780 4.03%
601-660 6.79%
501-600 10.98%
300-500 13.76%

Used Car APR

Average Used Car Loan Annual Percentage Rate
781-850 3.8%
661-780 5.48%
601-660 10.1%%
501-600 16.27%
300-500 19.32%

How Do I Get the Best Interest Rate?

Mar Vista drivers may wonder how to get the best interest rate. Getting a good interest rate requires careful planning and thinking. Here are a few things to keep in mind: (1) You’ll want to plan ahead. (2) You’ll want to take a peek at your credit history and your credit score. (The higher your credit score is, the lower your interest rate will be.) Of course, you’ll want to be ready to negotiate.

So, what’s a good car loan rate? It depends on your credit score. If you have a good credit score, then your loan rate should be lower.

What’s the Average Interest Rate on a Car Loan?

On a three-year car loan, your average interest rate should be around 3% to 4.5%. Of course, your credit score will affect the average interest rate. Ultimately, the best way to determine your interest rate is to compare car loans, or get pre-approved and compare.

Apply for Financing at MINI of Santa Monica

Our finance experts will help you with all things car financing, so that you can get behind the wheel of your next new or used MINI at a great cost. If you have any questions, please complete this easy-to-use and secure contact us form. We will work with you throughout the car-buying process.


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