Yes, 5.99% APR can be a good car loan rate, especially for used cars or borrowers with average credit, but it depends heavily on your credit score and the current market; excellent credit buyers might find lower, while those with poor credit could see much higher rates, though 5.99% is often near the average for good credit (661-780 score).
5.5% is pretty good for a used car loan.
On average, a new car buyer with an excellent credit score can secure an average interest rate of 5.18%, but that average jumps to 15.81% for borrowers with poor credit scores. For used car buyers, those averages range from 6.82% to 21.58%, depending on the borrower's credit history.
On a 36-month loan, 5.9% APR with above-average credit is a bad rate. If you see a rate this high with captive financing, it could be because it's for a longer-term loan.
APR stands for annual percentage rate and tells you the total cost of borrowing over one year.
A 5% APR is considered to be a good interest rate for a car loan but not a great interest rate. Make sure to compare interest rates from different lenders before making a decision. You may be able to get a lower interest rate if you have a good credit score or if you make a large down payment.
You can negotiate a lower interest rate on your credit card by calling your credit card issuer and asking for a rate reduction. While the issuer isn't guaranteed to say yes, you're most likely to find success if you have a history of on-time payments and your credit score is good or has recently increased.
The average APR for a car loan will depend on what deals are available at the time so it's worth shopping around. Personal loans are often the cheapest way to borrow money to buy a car if you have a good credit rating and can get access to the best deals.
The interest rate you receive depends on your credit score as well as the size of the loan. You can sometimes negotiate the interest rate on your loan. On average, drivers can find an interest rate ranging from 3.2% to 12.9%.
During The Holidays
Dealerships often roll out special financing offers and cashback incentives to boost sales during these times. Some of the best holidays for car deals are Independence Day, Memorial Day, Black Friday, and New Year's Eve. Independence Day is a major sales weekend for car dealerships.
You can pay less interest on a car loan by following these tips:
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.
How much would a $30,000 car cost per month? This all depends on the sales tax, the down payment, the interest rate and the length of the loan. But just as a ballpark estimate, assuming $3,000 down, an interest rate of 5.8% and a 60-month loan, the monthly payment would be about $520.
Excellent Credit (800+): Advertised APRs can be as low as 0% for special promotions. More commonly, they range from 2.99% to 5.99% APR for new vehicles. Good Credit (700–800): Expect APRs between 4.99% and 7.99%. Average Credit (600–700): APRs increase to the 8–12% range.
Yes, you can completely avoid paying interest (APR) on credit card purchases by paying your full statement balance by the due date each month, thanks to the grace period. This grace period (typically 21+ days) allows you to use borrowed money interest-free for purchases as long as you pay the full amount owed from the previous cycle on time, preventing interest from accruing on new charges.
You'll save money.
Unless your loan has precomputed interest (more on that below), extra principal payments can help reduce the total amount of interest you'll pay.