Knowing where your loan rates fall based on average car loan rates

Average car loan rates differ from one state to another. In case you are planning to buy a new or used car and in search for financing, you need to determine the amount that other borrowers are paying for their interest rates. By knowing this, you can make a comparison of what they pay and the amount that you would be paying in case you obtain a loan. Through this, you are able to determine whether your loan rates fall on the average or not. To further help you determine where your loan rates fall this article provides some useful information about the average car loan rates.

Average car loan rates per state

The national average car loan rates at present are estimated to be around 7%. However, this rate varies from one state to another. For example, you would get a new car loan amounting to $20,000 the interest rate tied to it in different states are the following:

  • Illinois- 6.07%
  • Philadelphia- 7.71%
  • Los Angeles- 7.54%
  • Cleveland- 6.19%

Although these are the average rate for car loans on the above mentioned states, you also need to bear in mind that the loan rates appropriate for you are still based on your personal details as well as your financial stability.

Knowing where you fall

In case you are getting an interest rate not similar to the national average car loan rates of 7%, you are either a good or a bad credit holder. Once the interest rates tied to the loans that are offered to you are lower than 7% this simply means that you have a good credit record. If the rates offered to you are higher than 7% it simply means that your credit record is not that impressive.

Borrowers with FICO scores of about 700 or higher are qualified to obtain loans with interest rates of 3% to 4% or even qualify for 0% interest loans offered by some lenders out there. Individuals with bad credit record on the other hand are probably paying more than the average rate of 7%.

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