What is a Good Interest Rate for a Car Loan?

Older man buying car from woman sales person

If you’re worried about navigating the auto financing process, the finance department of Cactus Jack's Auto is here to help. Many Mesa customers ask “What is a good interest rate for a car loan?”, but unfortunately, there’s no one-size-fits all answer. You might be surprised by just how many factors go into the calculation! Instead, we’ll walk you through the average rates based on your credit score, car condition, and Annual Percentage Rate or “APR”. This will help you get a good estimate of what range you can expect for your interest rate.

New and Used Car APR

Credit Score

APR (New Car)

APR (Used Car)











How Do I Secure the Best Interest Rate?

You’re already on the right track to securing the best interest rate, because the first step is research. You’ll need to find out your credit score to prepare for negotiations ahead. The higher your credit score, the lower your interest rate. And given that the APR can vary anywhere between 3.17% and 13.76%, it really pays to do your homework and create a good case for yourself when negotiating the terms of your loan! However, be careful to consider the rest of the deal as well. Your interest rate is just one part of the total package, so stay alert.

What is the Average Interest Rate on a Car Loan?

We’ve walked you through the high and low averages above, but what’s the average interest rate on a car loan in Surprise? Generally speaking, a three-year loan carries an average interest rate of around 3% to 4.5%. But a lot depends on your location, credit history, and other factors. If you want a good estimate, we recommend getting pre-approved for financing.

Learn More about Auto Financing

If you’re ready to learn more about auto financing in the Glendale area, feel free to get in contact with Cactus Jack's Auto of Phoenix for customized advice. In the meantime, check out our best tips on how to calculate interest rate on a car loan and how to improve your credit score.

Cactus Jack's Auto 33.5101018, -112.1115231.