What is a Good Interest Rate For a Car Loan?

When you’re shopping for a new-to-used car in Larchmont, you might ask yourself “What is a good interest rate for a car loan?” Your interest rate will depend on the car you decide to buy as well as your credit score, so check out what a good interest rate looks like today!

If you have specific questions feel free to contact us or browse our car buying tips to learn more!

How to Get a Good Car Loan Rate

To get the best interest rate on your new car purchase, take note of your credit history and score; whereas a higher credit score will lower your interest rate. Be ready to negotiate, and learn all you can about the car you want to buy. You can also read reviews and find the current market value of the car from services such as Kelley Blue Book, Edmunds, or consult our chart. Using your credit score, find the ideal interest rate for your range, and negotiate for that rate at the dealership (A good car loan rate is between 3.17% and 13.76%). Be sure to pay attention to the details about your purchase to pay only for what you need or want.

What is the Average Interest Rate on a Car Loan?

The average interest rate on a car loan is around 3-4.5%, but you may be offered a different rate based on your credit score or the dealership you are getting the loan in. It might be worth shopping around to see which dealership offers the best deals (Be sure to finish your application within 14 days to avoid a negative impact on your credit score).

What High Interest Rates Mean for Your Auto Loan

As of the time of this writing, there has been a significant increase in interest rates compared to where they were before the pandemic started. What does this mean for your car purchase? Since the interest rate affects the cost of borrowing, that naturally means that interest rates are headed up. However, we encourage you to shop around between the Mercedes-Benz of New Rochelle finance department and your local lending sources to find the interest rate and terms that are best for your needs in Mamaroneck.

Apply for Financing at Mercedes-Benz of New Rochelle

We want to get you enjoying your new vehicle driving from Bronxville to Mamaroneck as soon as possible, and our finance center is ready to help! Plan out your budget ahead with our payment calculator or contact us today!