What is a Good Interest Rate for a Car?

For most Indianapolis and Frankfort drivers, financing is a key part of purchasing a car. So, what’s a good rate for a car loan? Understanding what qualifies as a good interest rate can help you save money in the long run, ensuring you get the best deal possible. Explore the average car loan rates in this guide from the experts at Lafayette GMC, then apply for financing online.

How Do You Get the Best Interest Rate?

To get the best interest rate, the first thing you’ll want to do is plan ahead. Check your credit history and note the score. The higher the credit score, the lower your interest rate will be. You’ll also want to be ready to negotiate. 

So, what is a good interest rate for a car? There’s no singular answer for Delphi drivers. Based on the chart above, there are multiple ranges for new and used cars that are based largely on credit scores. After looking at the chart, plan the rate you want and be prepared to negotiate if they offer you something higher than you expected. Also, be careful of the offer. You don’t want to focus only on the payment and ignore the rest of the deal. Pay close attention to the details. 

What is the Average Interest Rate on a Car Loan?

The average auto loan interest rate for new cars is about 6.6%, while used cars have an average rate of around 10.8%. But you may receive a different offer based on your credit score, as well as where you’re getting the loan. In the end, the easiest way to compare your car loans and interest rates is to shop around or get pre-approved and compare that way.

Get Pre-Approved for Financing in Lafayette Today

Now that you have a better understanding of what a good interest rate is for a car, it’s time to take the next step with Lafayette GMC. Our dealership works with a large network of lenders, ensuring you get the best rate on your new or pre-owned vehicle. If you have any questions about your financing options, please don’t hesitate to reach out to us online or at (765) 257-2942—we’re here to help!