Interest rates can be scary, but the Weir Canyon Honda Finance Department is here to help you fight your fears and understand what is a good interest rate for your car loan. There’s no single answer since individuals have different credit scores, but we’ve created a handy chart that should help Tustin-area drivers like you, regardless of whether you have good or bad credit. Below, you’ll see annual percentage rates for both new and used car loans and how they correlate with credit scores. We hope to approve you for financing soon so we can watch you drive off into the Irvine-area sunset!
| Average New-Car Loan | Annual Percentage Rate | Average Used-Car Loan | Annual Percentage Rate |
| 781-850 | 3.17% | 781-850 | 3.8% |
| 661-780 | 4.03% | 661-780 | 5.48% |
| 601-660 | 6.79% | 601-660 | 10.1% |
| 501-600 | 10.98% | 501-600 | 16.27% |
| 300-500 | 13.76% | 300-500 | 19.32% |
Planning is essential when attempting to earn the best interest rate possible for a car loan. Do your research: check your credit history, note your score, and anything significant that might be working against you. The higher your score, the lower your interest rate should be. With that said, you have to be willing to ask for the interest rate you deserve, which means negotiating. So what is a good car loan annual percentage rate for Riverside-area drivers? The gulf between a good score and a bad score is large: from an APR of 3.17% to 13.76%. Look at the chart above to figure out where your likely rate rests, and then negotiate if your APR offer is higher than that. Finally, don’t let the rate itself blind you to other factors: ensure the rest of the deal is good, too.
The average interest rate on a three-year car loan is 3% to 4.5%. Of course, where you’re getting your loan and your credit score will have a significant impact on your interest rate offer. The best way to make sure your offer is fair is to shop around or get pre-approved, and then compare offers.
Chat with the Weir Canyon Honda Finance Department to find the best strategy for tackling the pre-approval process. We’re dedicated to Yorba Linda drivers getting the car of their dreams. Whether you are looking to buy or lease, we can help you get car lease even if you have bad credit. Contact us to learn about the meaning of a car’s MSRP, or to compare rates, or estimate what your monthly payment might be. We’ll also be happy to fill you in on our used car leasing options. If you’re gung-ho on owning a new Honda Accord or CR-V ASAP, apply financing with us today!
