What is a Good Interest Rate for a Car Loan?

toy car and money

Everyone wants a great deal on a car loan, but not everyone knows just what numbers are ideal. So, just what is a good interest rate for a car loan? We’ll break down the average loan figures based on factors like credit score, Annual Percentage Rate (APR), and others. Let’s take a look at the different paths of financing a car:

What is the Average Interest Rate on a Car Loan?

Before we can determine a good interest rate, what is the average interest rate on a car loan? On a three-year car loan, the average interest rate is around 3% to 4.5%. Your Annual Percentage Rate, or APR, is determined primarily by your car’s condition and your credit score. The higher your credit score, the lower your APR. But if you’re worried about financing with no credit or bad credit, keep reading!

Average New Car Loan


Average Used Car Loan






















money exchange for car

What is a Good Car Loan Rate?

A good car loan rate will depend on your credit score, so it could fall anywhere between 3.17% and 13.76% for you. If you want to drive down that number, the best way to lower your interest is to raise your credit score. Even if your credit is less than perfect at the moment, there are ways to improve your standing – just talk to our finance department for tips. From paying off simple loans to checking your credit report for errors, a better credit score is well within your reach. Additionally, remember what your interest rate is just one small part of your loan package. Be sure to consider the entire offer and not get too caught up with what is a good car loan rate in and of itself.

Get Expert Help with Allen Samuels Auto Group

The best way to get a fantastic loan package is to work with expert financial advisors who really care about your future, and that’s exactly what you’ll find at Allen Samuels Auto Group. Ready to get one step closer to the car of your dreams? Contact us to get started!

This document has been edited with the free version of the instant HTML edior. Try it here and use it every time for your projects.

More from Allen Samuels Auto Group

  • 2021 Jeep Cherokee Trim Levels

    The new Jeep Cherokee is the perfect choice for drivers who love to take the unbeaten path or scenic detour. You’ll be pleasantly surprised to know that the 2021 Jeep Cherokee comes in nine distinct trims, so you’ll have plenty of options when choosing the right model for your next Waco adventure. Explore the Jeep…

  • 2021 Jeep Renegade Interior Features

    The Jeep Renegade has the exterior capability to get you where you need to go whether you take the Waco highway or the back roads. But, what about the inside? The Jeep Renegade interior has space, technology, and convenience features to keep everyone comfortable and connected no matter where you go. See how you can…

  • 2021 Jeep Wrangler Interior

    The Jeep Wrangler is known for its relentless capability on both the Waco highway and back road trails. However, you’ll be pleasantly surprised at just how comfortable the interior of this SUV is. Take a tour inside the Jeep Wrangler with Allen Samuels Auto Group, and see how you can ride smoothly on even the roughest terrains. Then,…

Saved Vehicles


You don't have any saved vehicles!

Look for this link on your favorites:


Once you've saved some vehicles, you can view them here at any time.

Contact Us


Call Now

301 Owen Ln • Waco, TX 76710

Get Directions
Allen Samuels Auto Group 31.515482, -97.1923705.