What is a Good Interest Rate for a Car Loan?
If you’re new to financing a car in San Antonio, how can you tell what is a good car loan rate? The finance center at Maserati of Austin can help you make sure you’re getting the best interest rate on your car loan, and teach you what went into the calculation in the process! Here, we’ve highlighted the most important things to know about car loan interest rates in the Houston area.
How Do You Get the Best Interest Rate?
In order to get the best interest rate, the first thing you’ll want is check your credit history. The higher your credit score, the lower your interest rate will be. If your credit score is lower than you’d like, here are some ways to improve it:
- Look at how your credit score got low in the first place and see where it’s improved. If you’ve been rebuilding credit, your credit score might still be low. However, recent prompt payments on all bills will help you appeal to lenders.
- Bring proof of your income, proof of address and insurance, and proof that you’re currently employed.
- Make a higher down payment and value your trade-in with the dealership. Proving that you’re serious about the investment can increase your chances of getting a low interest rate.
- Buy a used car instead of a new car. Used car loan rates are almost always a few percentage points lower than loans on newer vehicles, and it’s easy to find a used Maserati Ghibli or a used Maserati Quattroporte at Maserati of Austin.
After looking at this chart, plan the rate you want and be prepared to negotiate if they offer you something higher than you expected. If you find yourself tempted to search for low interest rates outside of the San Antonio area, you might want to find out how to buy a car in another state, too!
What is the Average Interest Rate on a Car Loan?
On a three-year car loan, the average interest rate is around 3% to 4.5%. However, you may receive a different offer, depending on your credit score as well as where you’re getting the loan. In the end, the easiest way to compare your car loans and interest rates is to shop around, or get pre-approved and compare that way. Here’s the average auto loan interest rates on the FICO scale as of October, 2019:
- Credit score over 750: 4.24%
- Credit score 700-749: 4.49%
- Credit score 650-699: 7.92%
- Credit score 450-649: 14%
- Credit score below 449: 18.4%
Trust Maserati of Austin in Austin with Your Financing Needs
At Maserati of Austin, we encourage car buyers to learn as much as they can about the financing process. Use our payment calculator to find out how much you’ll be paying monthly, and find out how an interest rate can impact your budget. Contact our financing center with any questions about how to get a good interest rate on a car loan.
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