Alex Fort Wayne, Ind.

The national average interest rate for a bank’s new-car loan is 7.45 percent for a 48-month term; used cars are 7.87 percent for a 36-month loan average, according to Bankrate.com.

A loan’s interest rate depends on many variables, including your personal credit history, lender (bank or credit union), loan term length (36 months, 48 months, 60 months, etc.) and the car itself (new or used). For example, a bank’s 36-month new-car loan has an average interest rate of 7.19 percent; a 60-month loan is 7.64 percent. In 2008, the national average for credit union interest rates was 5.6 percent and 5.9 percent for new and used cars, respectively, for 48-month loans. 

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Obviously, 11.9 percent is higher than these listed national averages, so you should determine why that is and shop around for a better rate. You can find more information about shopping for the best interest rates in the Cars.com article, “Best Interest Rates: How to Get Them.”

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Answered by Joe Bruzek on May 19, 2009 in I'm Just Wondering , What Does This Mean? | Permalink

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