what is the average interest rate for a car loan with bad credit blog What is the Average Interest Rate for a Car Loan with Bad Credit?

What is the Average Interest Rate for a Car Loan with Bad Credit?

Some people have enough money in the bank to pay for a vehicle outright. Maybe it was an inheritance, maybe they liquidated some assets, or they’re one of the proud few that worked hard and saved up for it. Either way, their case is not the norm, as 84.5% needed auto financing to purchase a car in 2013. This post is to help the majority understand how to navigate the murky waters of auto financing.

Need help figuring out exactly what type of budget you have? You can start by using our free online payment calculator so you have a better idea of what your monthly payments will be like. However, you can’t depend on the upfront monthly payments alone. You also need to take into consideration the interest rate you’ll have over the course of your payment plan.

Depending on your credit, there are different interest rates for different people. While it is completely possible for you to get the best car loan available, it is important to get familiar with what the average rates are for a bad credit car loan.

Average Rates for Bad Credit

The good news is that each year, more and more people are getting approved for loans with lower credit scores. There are also differently-sized loans available. Some buyers are going for huge loans, between $20,000 - $25,000, while others get smaller loans of $10,000 - $17,000 for used vehicles.

According to a recent study, the interest rates on these loans have been significantly lowered as well. And, they are continuing to decrease. On average, you will see an interest rate of 4.56% for new vehicles, and a rate of 9.02% for used vehicles.

When you combine these lowered interest rates with longer loan terms, it makes overall payments much easier!

Use Our Free Calculator Today!

If you’re feeling confident about your ability to pay off your monthly payments, now is a better time than ever to apply for a bad credit car loan. Be sure to use our free calculator up above to determine what your budget is, and how many monthly payments you’ll have over time. Just be sure to keep average interest rates in mind!

We’ve been in the industry since 1989, and we understand how you can get the most out of your bad credit. If you’re ready to get the best car loan possible, apply with us today and we’ll set you on the course to success!