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

Comments

Where these people are coming from with such questions?
They obviously got themselves a computer and even completed such task as submitting a question here. But they couldn't google "car loan rate" or go to any bank website to see the rates offered.
Oh... I get it! This is Alex from Fort Wayne, IN!!!!
No farther questions. Only answers.
Alex, take 11.9 - good deal :). Just kidding...

Maybe you should try spell check for the word "farther". Oh... I get it, never mind its Tony from Dumbassville,U.S.A

That's way too high. I don't sign unless all my interest rates are in the 7's or less

Credit history is the primarily determines finance rate.

11.9% = Your credit needs work. If thats all you can get, you should probably be happy you got anything at all.

is it best to purchase a car cash or finance in order to improve a fico score of 740? is the cost of finance worth the attempt to increase fico score?

No interest rate is good for a car loan. Cars are a horrible investment. Adding finance charges on top of rapid depreciation is absolute folly. Pay cash or don't buy.

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