If you're like a lot of our Elgin customers before they come into our lot, you may be wondering, "What is a good interest rate on a car loan?". It's a good question. Rates can vary depending on a number of different factors. What is a good interest rate for a car loan? What is the average interest rate on a car loan? You have questions. The Elgin CDJR finance department has answers.

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What is the Average Interest Rate on a Car Loan?

What is the average interest rate on a car loan? It depends. How's your credit score? How old is the car? Let's start by breaking down what the average interest rate on a car loan is by the length of the loan (all numbers used in this post are from Q2 2020).

Average Interest Rate on a Car Loan by Length of the Loan
  • 36 Month - 3.81%
  • 48 Month - 3.88%
  • 60 Month - 3.96%
  • 72 Month - 4.18%

What is a Good Car Loan Rate on a New Car?

What is a good interest rate on a car loan for a new car? A major factor here is your credit score and your credit history. Before you apply for a vehicle loan, you should take care of any outstanding debts or pay off small bills to improve your credit score. See the average interest rate by car loan below and learn how you can qualify for a car loan.

Average Interest Rate on a New Car Loan by Credit Score
  • 781-850 - 3.24%
  • 661-780 - 4.21%
  • 601-660 - 7.14%
  • 501-600 - 11.33%
  • 300-500 - 13.97%

What is a Good Car Loan Rate on a Used Car?

What is a good interest rate on a car loan for a used car? The interest rate on a used vehicle will also vary depending on your credit score. However, the interest rate on a used vehicle will be a bit higher due to its age and factors like its condition and current market value.

Average Interest Rate on a Used  Car Loan by Credit Score

  • 781-850 - 4.08%
  • 661-780 - 6.05%
  • 601-660 - 11.41%
  • 501-600 - 17.78%
  • 300-500 - 20.67%


Interest Rates Vary by Lender

Did you know that what the average rate on a car loan is can vary by which bank issues the loan? However, dealers like Elgin CDJR work with more than one lending institution to ensure you get the best rate possible on your new or used vehicle purchase whether you're driving through Bartlett or Streamwood.

Average Interest Rate on a Car Loan by Lender
Bank of America auto loan - 2.39% (new) 2.69% (used)
USAA auto loan - 2.89% (new) 3.29% (used)
US Bank auto loan - 2.59% (new) 2.59% (used)

Let Our Finance Department Help You Get Into Your Next Car

The friendly finance department at Elgin CDJR makes it easy for you, too. You can even apply for financing online and learn how to sell your car at Elgin CDJR.. We're just a short drive away from South Elgin, drop by or contact us today to see our inventory and get the CDJR vehicle you need!