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Saved Vehicles " "How does interest work on a car loan? What is a good interest rate for a car loan? Our finance team at Federico Kia is asked these questions every day! Your interest rate will depend almost entirely on your credit score, and we’ve made an overview of average APR by credit score. That way, our team can help you learn about rates before you apply for financing at Federico Kia near Alton!
Average New-Car Loan | Annual Percentage Rate | Average Used-Car Loan | Annual Percentage Rate |
781-850 | 3.17% | 781-850 | 3.8% |
661-780 | 4.03% | 661-780 | 5.48% |
601-660 | 6.79% | 601-660 | 10.1% |
501-600 | 10.98% | 501-600 | 16.27% |
300-500 | 13.76% | 300-500 | 19.32% |
Most car loans are simple interest loans, as opposed to compound interest loans:
In order to get the best interest rate, it’s important to plan early and plan ahead! Take these tips into account to ensure that you land a great interest rate:
The average interest rate for a three-year loan is around 3% to 4.5%, but it may vary depending on your credit score as well as who is giving you the loan. In the end, the easiest way to compare your car loans and interest rates is to shop around near Godfrey, or get pre-approved and compare that way.
Every once in a while, one of our customers ask is, “is car loan interest deductible?” Unless your vehicle is a company car, or used strictly for business purposes, no, car loan interest is not deductible. If you have any questions, don’t hesitate to contact us today!
Whether you’re wondering “is car loan interest deductible?” or “what is a good interest rate for a car loan?” our team is here to help! Apply for financing today, and our team will help you secure a competitive rate on a new Kia. We can also help you learn how to improve your credit score in an effort to acquire more favorable lending rates!
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(618) 248-4243
Call Now1911 E Edwardsville Rd • Wood River, IL 62095
Get DirectionsOpen Today! Sales: 8:30am-5pm
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