What is the Average APR for a Car Loan?

If you’re considering taking out a car loan, you’re probably wondering what the average APR is. Here’s what you need to know.

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Most car loans have a fixed APR, which means the interest rate stays the same for the life of the loan. The average APR for a car loan is around 4%. But depending on your credit score, the type of vehicle you’re buying, and other factors, your APR could be much higher or lower.

The Average APR for a Car Loan

The average APR for a car loan is around 4%. This rate may change depending on the lender, the type of car being financed, and the borrower’s credit history.

How to Get the Best APR for a Car Loan

When you’re looking for a car loan, it’s important to shop around for the best interest rate. The annual percentage rate (APR) is the cost of borrowing money, and it’s important to compare APRs from different lenders to make sure you’re getting the best deal.

Interest rates on car loans vary depending on several factors, including the type of loan, the lender, your credit score, and the amount of money you borrow. In general, the higher your credit score, the lower the interest rate you’ll qualify for. And if you have a longer loan term, you may also get a lower APR.

Here are some tips to help you get the best APR on a car loan:

-Check your credit report and score: Before you start shopping for a car loan, it’s a good idea to check your credit report and score to see where you stand. You can get a free copy of your credit report from each of the three major credit bureaus—Experian, Equifax, and TransUnion—once per year at AnnualCreditReport.com. And you can check your credit score for free on Credit Karma.

-Shop around: Once you know your credit score, you can start shopping around for loans. It’s a good idea to compare rates from multiple lenders to make sure you’re getting the best deal. You can use an online lending marketplace like Credible to compare rates from different lenders in just minutes. When you pre-qualify with Credible, there’s no impact to your credit score—so it pays to shop around!

-Consider a longer loan term: If you need to finance a new car purchase, one way to get a lower APR is by choosing a longer loan term. While this means you’ll be making monthly payments for a longer period of time, it also means that your monthly payments will be lower. Keep in mind that choosing a longer loan term may also increase the total amount of interest you pay over the life of the loan—so be sure to do your research before making any decisions.

-Make a larger down payment: If possible, try to make a larger down payment on your car loan. A larger down payment means that you’ll be borrowing less money overall—which could lead to a lower interest rate on your loan. Of course, this isn’t always possible—but if it is, it may be worth considering.

-Refinance your car loan: If you already have a car loan but want to try to get a lower interest rate, consider refinancing with Credible or another lender. When you refinance an auto loan through Credible or another lender


After consulting with a few experts and conducting our own research, we have come to the conclusion that the average APR for a car loan is around 4%. This rate can vary depending on factors such as your credit score, the length of the loan, and the type of vehicle you are looking to purchase. However, 4% is a good place to start when estimating the costs of your car loan.

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