What’s a good APR for a car loan?

Your APR is the price of borrowing, and even a point or two changes the total by hundreds or thousands. Knowing what’s reasonable — and how to move it — is worth real money.

What sets your rate

Lenders price an auto loan mostly on your credit score, the loan term, whether the car is new or used, and the size of your down payment. Stronger credit, shorter terms, and new cars get the lowest rates; long terms and used cars cost more. See how a rate change hits the total with the car loan calculator.

What counts as “good”

It moves with the market, so compare against current averages for your credit tier rather than a fixed number. The rule that always holds: the rate you’re quoted should be near the best advertised rate for your score — if it isn’t, you have room to negotiate or shop.

How to get a lower rate

• Improve your credit before applying, even a little — tiers matter.
• Put more down; the down payment calculator shows the effect.
• Choose the shortest term you can afford.
• Rate-shop within a two-week window so it counts as one inquiry.

You can fix it later

Stuck with a high rate? If your credit or market rates improve, refinancing can drop the payment — check the savings with the refinance calculator.