PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
How much interest is too much for a car loan?
I’m looking at interest rates for car loans and I’m just wondering, how much is too much? I want to get a new car but I’m worried that I’ll bite off more than I can chew with interest costs.
Liz Jenson · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Car loan interest rates should not exceed 25%. But because car loan rates vary, what might be too much interest on a car loan for one person might actually be a very low rate for another. Car loan
APRs
range from 0% to 25% or higher since they are largely determined by your credit score
.To give you a better idea of typical interest rates for different credit scores, here are the current average rates for a 48-month loan:
- 781 to 850: 2.34% for a new car, 3.66% for a used car
- 661 to 780: 3.48% new, 5.49% used
- 601 to 660: 6.61% new, 10.49% used
- 501 to 600: 11.03% new, 17.11% used
- 300 to 500: 14.59% new, 20.58% used
To make sure that you’re getting a good rate on your car loan, it’s a good idea to shop around with different lenders. That way, you’ll see multiple offers and be sure that you’re getting the best rate.
Since you’re shopping for the best car loan rates, why not shop for better insurance rates, too? It’s easy when you use the
Jerry
app! Just download the app and answer some quick questions to see your policy options in a comprehensive list. When you find a quote you like, Jerry can help you cancel your old policy and sign up.View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies