What is a Good Interest Rate for a Car Loan?

There is no sugarcoating it: the current annual percentage interest rates on auto loans absolutely suck. With people in Pittsford and across the nation scrambling to keep up with absurdly high inflation rates and interest hikes, current car loan interest rates are barricading individuals from buying a new or used car.

What is a good interest rate for a car loan in this day and age? Sadly, there really isn’t a “good interest rate” nowadays, as those with excellent credit scores still have an average APR rate of 9.31% for new car loans, and 9.56% for loans on used cars. If you need to buy a car in this day and age, you’re probably wondering, “How in the world can I even afford an auto-loan, even if I have superior credit?” Learn how to navigate a world of rising interest rates with Ide Honda finance team.

Current New and Used Car APR Rates

So… What Can I Do to Get a Lower APR Rate?

Now that it’s clear that there isn’t really such a thing as a “good car loan interest rate” these days, what can you do to make sure you get the best rate possible near Webster and Fairport?

1. Keep tabs on your credit score. Already have a shining credit score? Great! Have one that’s not so great? It’s time to get cleaning. And by cleaning, that means making the effort to remove blemishes off of your credit report. Before applying for financing, be sure to pay off any outstanding balances, make your payments on time, and if have any, dispute any inaccurate information
2. Shop around! While we love it when our customers choose Ide Honda for financing, it is recommended that you shop around with different lenders to see if you can get the lowest interest rate possible before stepping onto our lot.
3. Consider a shorter loan term. Because longer loan terms consist of smaller payments over a longer period of time, you’ll accrue far more interest than you would on a short term auto loan. You’ll be paying more on a monthly basis with a short term loan, but in the long term, you’ll save far more by having less accrued interest.
4. If you have poor credit, get a cosigner. If you have close ties to someone with good credit, have them co-sign as a co-borrower. Note that the co-borrower will also be responsible for any missed payments if you fail to pay yourself.

Apply for Financing at Ide Honda

Now that you know, “what is a good car interest rate,” during this day and age, you know that, well, good car loan interest rates are hard to come by in this day and age, even with an attractive credit score. Shopping around for auto loans is encouraged, but the finance team at Ide Honda is here to help you. Before you apply for financing on a new or used car from our dealership, don’t hesitate to get in touch with a finance team member with any questions, and check out our current finance specials to see how you can get a better deal. Times may be difficult, but know that Ide Honda has your best interests in mind (literally).