Dealerships will often advertise very good interest rates on new cars: 2.9%, 1.9%, sometimes even 0%. What they leave in the fine print is that these rates are only available to car buyers with the best credit-that may mean a score of 750 or better.Dec 7, 2021
What is a good interest rate for a 72 month car loan?
Loan term Average interest rate
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36-month new car loan 3.67% APR
48-month new car loan 3.74% APR
60-month new car loan 3.81% APR
72-month new car loan 3.96% APR
Is it smart to do a 72 month car loan?
A 72-month car loan can make sense in some cases, but it typically only applies if you have good credit. When you have bad credit, a 72-month auto loan can sound appealing due to the lower monthly payment, but, in reality, you're probably going to pay more than you bargained for.
What are the pros and cons of a 72 month auto loan?
- Pro: Getting lower monthly payments.
- Pro: Achieving greater financial flexibility.
- Con: Paying additional interest.
- Con: Having negative equity or being “upside down” in the car loan.
- Con: Buying more car than you can afford.
What is a good interest rate on a car?
According to Middletown Honda, depending on your credit score, good car loan interest rates can range anywhere from 3 percent to almost 14 percent. However, most three-year car loans for someone with an average to above-average credit score come with a roughly 3 percent to 4.5 percent interest rate.
Is 2.9 a good rate for car?
As of January 2020, U.S. News reports the following statistics for average auto loan rates: Excellent (750 - 850): 4.93 percent for new, 5.18 percent for used, 4.36 percent for refinancing. Good (700 - 749): 5.06 percent for new, 5.31 percent for used, 5.06 percent for refinancing.Mar 9, 2020
What is a good APR for a used car?
Although there's always going to be some wiggle room, the average used car loan interest rates are as follows: Excellent Credit (750 or Higher) 5.1% APR. Good Credit (700 to 749) 4.91% APR. Average Credit (600 to 699) 5.89% APR.
Is 2.99 a good interest rate for a new car?
Credit score category Average loan APR for new car Average loan APR for used car
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Super Prime (781 to 850) 2.34% 3.66%
Is 72 months too long for a car loan?
Auto loans over 60 months are not the best way to finance a car because, for one thing, they carry higher car loan interest rates. Experian reveals that 42.1% of used-car shoppers are taking 61- to 72-month loans while 23% go even longer, financing between 73 and 84 months.
Is a 60 month or 72 month loan better?
Overall, if you're choosing between the two, a 60-month loan is better because you'll pay off the loan faster with a lower interest rate, and you'd be paying less overall for your car.
What is the interest rate on a 72 month loan?
Auto Loan Term Average Interest Rate
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72 Month 4.45%