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
What is a typical car loan interest rate?
What is a normal interest rate for a car loan? I'm looking into getting one and I don't want to get scammed.
Emily Maracle · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Taking out a
car loan
is a big step, so it makes sense you want to get the best deal and avoid getting scammed.There isn’t necessarily a typical loan interest rate. Rates vary depending on your credit score and financial stability. However, I can tell you what’s average.
Average auto loan interest rates are:
- 4.09% for new cars
- 8.66% for used cars
If you have an exceptional credit score, you can likely get an interest rate under 3%. If you have a lower credit score, you can expect a higher interest rate as you are seen as a less favorable borrower.
Terms and conditions will vary by lender. So to ensure you’re getting the best rate, shop around. If one lender is offering you unfavorable rates, move on—another may offer something better!
That said, be sure you read over the fine print before signing your loan contract. Understanding the terms and conditions is one of the best ways to avoid getting scammed.
A licensed broker, Jerry does all the hard work of finding cheap quotes from the top name-brand insurance companies and buying new car insurance. Jerry will even help you cancel your old policy.
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