Thus, before considering a car loan you should become aware of the current
average car loan rates in order to avoid being ripped off.
At the time of my writing this post, the current
average car loan rate has only dropped slightly to 4.13 % for the same four year term.
Not exact matches
The
average five - year new
car loan rate is 4.36 percent and the
average four - year used
car loan rate is 5.05 percent.
The
average interest
rate on a 48 - month new -
car loan dropped to 4.1 % this summer from more than 7 % at the end of 2008, though it's changed little in the last two years.
On top of that, they also calculated in the national 4.24 %
average interest
rate for a 48 month new
car loan at the time.
In fact,
car loans now last an
average of more than six years, according to the credit -
rating company Experian.
A
car buyer with a FICO score of 730 would get an interest
rate of 6.837 % on
average on a five - year
loan to buy a new
car, as of Jan. 6, according to Informa.
Bottom line: Not only are you risking your
car if you take out a title
loan, but you won't get a good deal on an interest
rate (
average APRs are around 200 % to 300 %!).
If the interest
rates on your other debt -
car or student
loan or mortgage - is higher than what you could earn by saving or investing (consider that the
average annual inflation - adjusted historical return of the U.S. stock market is just over 6 %), you'd be wise to pay that down first too.
The
average interest
rates on auto
loans for used
cars are generally higher than for
loans on new models.
Car loans have an
average interest
rate of between one and seven percent.
Although the
average car loan is 72 months or longer, ask for a 48 - month term and the interest
rate will drop by a percentage point or two.
If you have a below -
average credit score, then you realize that you might pay a higher interest
rate for a
car loan (even though I would never suggest doing that), but who would have thought that your bad credit history could impact a future job opportunity?
As of June 2017, the
average national
rate for a credit union's four - year new
car loan is 2.71 percent and a bank's is 4.60 percent.
It's important to be aware that after a bankruptcy or a consumer proposal, your
car loan approval
rates may be higher than
average for a period of time.
According to the National Credit Union Association, as of June 27, 2014, the
average interest
rate on a 48 - month new -
car loan was 2.64 percent at the credit union, compared with 4.78 percent at major banks.
When this article was published, the
average rate for a 4 - year auto
loan on a used
car was 4.17 % (source: Bankrate.com).
A less - than -
average credit history won't necessarily stand between you and your
car loan (unlike a personal
loan), and it will have less impact on your interest
rate or borrowing amount (which is dictated by the price of the
car).
By contrast, the
average car loan balance in the United States was $ 18,177 in Q2 2016 with a delinquency
rate of 1.11 percent.
Based on a 60 - month
loan and a borrower's credit score between 690 and 850, the 2017
average auto
loan interest
rate for a new
car has been 4.28 %.
To help you find the best deal, we'll look at the
average rate for a used
car loan in the U.S. and six of the top lenders in the industry.
At an
average rate of just $ 40 per year, it is most likely worth the extra insurance expense if your
car's
loan amount significantly exceeds its value.
While the
average amount varies for a
car title
loan, the
rates are usually regulated by your state laws.
My actual score is above
average; I have fantastic
rates on two
car loans and the best credit cards; no annual fees, cash back....
Those aren't
rates you usually see, since the
average 60 - month, new -
car loan costs 4.21 %, according to our national latest weekly survey of major lenders.
If you choose not to use the
car - buying service, PenFed offers new - auto
loans with
rates as low as 1.49 % for three years and 1.99 % for 5 years — still less than half the national
average.