What Is a Good Interest Rate for a Car Loan in Hermitage?

Knowledgeable Sharon and Mercer drivers know that the upfront cost is only part of the picture when it comes to getting a good deal on a car. The interest rate on the car loan is also important, as it can determine the size of monthly payments and the amount you pay in interest in the long run. So, what is a good interest rate for a car loan? A car loan’s annual percentage rate (APR) varies based on numerous factors, including your credit score and the vehicle’s age.

Our finance department wants you to make an informed decision when buying your next car. Discover the average interest rate for a car loan and how you can secure the best terms in our guide below.

Average Car Loan Interest Rate for New Vehicles

One of the advantages of buying a new car is that average car loan interest rates are often a little lower depending on your credit score. You’ll want to take that into consideration when deciding whether to buy new or used. Here’s how interest rates on new cars break out by credit score:

Average APR for a New Car by Credit Score

• 781–850 – 5.08%
• 661–780 – 6.70%
• 601–660 – 9.72%
• 501–600 – 13.00%
• 300–500 – 15.43%

Average Car Loan Interest Rate for Used Vehicles

Used car loans can carry a higher interest rate for customers with average to lower-than-average credit scores. Here is how the average APR for a car loan breaks out by credit score:

Average APR for a Used Car by Credit Score

• 781–850 – 7.41%
• 661–780 – 9.63%
• 601–660 – 14.07%
• 501–600 – 18.95%
• 300–500 – 21.55%

What Other Factors Affect the Average Interest Rate for a Car Loan?

As you consider the average interest rate for a car loan, keep the following factors in mind:

The Length of the Term Can Impact the Interest Rate

If you want to get the best deal on a car loan, one of the best ways is to pick the shortest loan term. That means you’ll pay more each time but have fewer payments overall, resulting in less interest.

Every Lender is Different

Comparison shopping is not just a good strategy at the grocery store. Shopping around for auto loans is also important, as interest rates can vary widely based on the lender. The finance department at Shenango Honda does that work for you by leveraging our relationships with multiple lenders to get you the best rate possible. That way, you don’t have to visit every lender in the Hubbard trying to find the best rate.

Explore Your Financing Options With Shenango Honda

We will do everything in our power to put you behind the wheel of your next car, regardless of your credit situation. Get pre-approved in seconds with our secure online application, then start a conversation with us at 800-858-0849.