A 72-month loan for a car is a long-term loan, and long-term loans typically come with higher interest. While long-term loans translate to lower monthly payments, they result in more interest paid over the life of the loan. With that said, an interest rate of around 5% for a 72-month auto loan is considered ideal.
What is a good interest rate for a 72-month car loan? An interest rate under 5% is a great rate for a 72-month auto loan.
If you're buying a car at a rate of 5.9% APR, you could be getting a bad deal. In truth, whether or not that's a good or bad rate will depend on a variety of factors such as your credit history, the loan term, and whether you're buying a new or used car.
How much are car payments with a 5.9% interest rate? 5.9% APR car payments on a $40000 vehicle are $771.45 per month for 5 Years. Compare Rates: 0%
APR – or Annual Percentage Rate – refers to the total cost of your borrowing for a year. Importantly, it includes the standard fees and interest you'll have to pay.
Anything below the average credit card interest rate — 23.55% for new offers, as of February 2023, according to a LendingTree study — is generally considered a good APR, and anything above that rate is considered high.
Key takeaways. Your credit card APR can go up if the prime rate changes, you paid your credit card bill late, your intro APR offer ended or your credit score dropped. If your APR increases, you can work on paying down your balance or transfer your balance to a card with a low or 0 percent intro APR offer.
If you can get a rate under 6% for a used car, this is likely to be considered a good APR.
If your credit score falls between 661 and 780, we think it's a good idea to shoot for an interest rate of 5% or lower. This will put you well below the average, even compared to other drivers in this credit range.
Because of the high interest rates and risk of going upside down, most experts agree that a 72-month loan isn't an ideal choice. Experts recommend that borrowers take out a shorter loan. And for an optimal interest rate, a loan term fewer than 60 months is a better way to go. You can learn more about car loans here.
In early 2023, average rates for new and used vehicles were 6.58 percent and 11.70 percent, respectively, according to Experian. The third quarter brought similar rates, 7.03 percent for new and 11.35 percent for used.
Just divide 72 by your interest rate, and there you have how long it would take for the loan or investment amount to double. So, 1% would take 72 years to double. 5% takes about 15 years to double. 10% takes 7.2 years to double.
Car Loan APRs by Credit Score
Excellent (750 - 850): 2.96 percent for new, 3.68 percent for used. Good (700 - 749): 4.03 percent for new, 5.53 percent for used. Fair (650 - 699): 6.75 percent for new, 10.33 percent for used. Poor (450 - 649): 12.84 percent for new, 20.43 percent for used.
48 months (four years) 60 months (five years) 72 months (six years) 84 months (seven years)
Average Car Loan Interest Rate on a New Car Loan by Credit Score: 781–850 – 3.84% 661–780 – 4.9% 601–660 – 7.25%
If you have good credit (700-749), the average auto loan rates are 6.02% for a new car and 6.27% for a used car. If you have fair credit (600-699), the average auto loan rates are 11.40% for a new car and 11.65% for a used car.
Car payment statistics
The average monthly car payment for new cars is $726. The average monthly car payment for used cars is $533. 39.20 percent of vehicles financed in the third quarter of 2023 were new vehicles. 60.80 percent of vehicles financed in the third quarter of 2023 were used vehicles.
Your credit score is crucial to determine your eligibility for a no down payment car loan. Most lenders require a FICO credit score of at least 680 before you can qualify. If your credit score falls below 680, improve your credit score before you apply to help you qualify in the future.
The average auto loan interest rate in the third quarter of 2023 was 7.03% for new vehicles and 11.35% for used vehicles, according to Experian. However, the rate you receive on a car loan will depend on your credit scores. The higher your scores, the lower your auto loan rate.
The APR you receive is based on your credit score – the higher your score, the lower your APR. A good APR is around 22%, which is the current average for credit cards. People with bad credit may only have options for higher APR credit cards around 30%. Some people with good credit may find cards with APR as low as 16%.
Penalty APR: The rate applied to a card account when the cardholder fails to make payments in full or on time, violating their agreement. Penalty APRs are part of why credit card overspending can be so dangerous, as they may reach higher than 29.99% when a payment is at least 60 days late.
What to expect from credit cards with low APRs. Depending on the issuer, low-interest credit cards usually require a good credit score — 690 or higher — to qualify.