What’s a Good Interest Rate for an Auto Loan?
One of the things you are likely concerned with as you are looking at auto loans to buy a car is the actual interest rate that you can expect to pay with your loan.
You likely want to make sure that you are not getting ripped off with the auto loan rate you are considering.
The best way to do this is by seeing what interest rates you can get for auto loans. However, while this may seem a like simple question, it can have a complex answer.
Auto Loan Interest Rates
How much you can expect to pay in interest really does depend on your credit score. The higher your credit score, the lower your interest rate will be.
Therefore, it is always a good idea to work on your credit score to get it as high as possible before you start looking at making any big purchases, such as buying a car.
To break this down a bit further, these are some examples of interest rates based on specific credit scores that you can expect to find in the market.
- 500-589 – 15.24%
- 590-619 – 14.06%
- 620-659 – 9.72%
- 660-689 – 7.02%
- 690-719 – 4.95%
- 720-850 – 3.6%
Of course, these are just estimates and the actual values in the market can change, and do change, regularly.
However, this can give you a good starting point for what you can expect. As you can see, the interest rates change dramatically with the lower the score is.
Of course, everyone wants as low as possible for their interest rate but that means you need to have a high credit score.
If you are interested in learning more about your auto loan options, be sure to reach out to us here at Palmetto Citizen Credit Union today.