If you’re looking to purchase a new or used vehicle, you’re going to want to do your research on the average auto loan rates based on your credit score. Why? Your credit score, along with factors such as your debt-to-income ratio, plays a significant role in which lenders will be willing to work with you and the rates they can provide you.
Why Your Credit Score Matters
When you apply for an auto loan, your rate will be based on several factors, including your credit score. Your score is a number between 300 and 850. This number tells lenders how responsible you are with your spending and whether you are a reliable individual who can pay back loaned money in a timely manner.
The Average Auto Loan Rates Based on Your Credit Score
It’s important to understand that this will vary by the loan provider. However, there are some basic numbers available that can help guide you during your research. For instance, according to the credit bureau Experian, the average auto loan rate by credit score looks like the following:
- Credit scores of 579 or below: Auto loan rate for a new car averages 14.39%, while the average auto loan rate for a used car is 20.45%.
- Credit scores between 590 and 619: Auto loan rate for a new car averages 11.92%, while the average auto loan rate for a used car is 17.74%.
- Credit scores between 620 and 659: Auto loan rate for a new car averages 7.65%, while the average auto loan rate for a used car is 11.26%.
- Credit scores between 660 and 719: Auto loan rate for a new car averages 4.68%, while the average auto loan rate for a used car is 6.04%.
- Credit scores of 720 and above: Auto loan rate for a new car averages 3.65%, while the average auto loan rate for a used car is 4.29%.
Again, these numbers can and will vary depending on the auto lender. So, make sure you take the time to shop around for the best deal possible.
Have questions? Then contact our team today for more information!
