what are the current car finance rates ? Its Good to bad credit car finance?

Car finance rates in the U.S. can vary widely based on a variety of factors. As of my last update in September 2021, here are some key determinants of auto loan interest rates:

Credit Score:

A borrower’s credit score is one of the most significant factors determining interest rates. Those with higher scores usually get better rates. For instance:

– Excellent Credit (720+): Might offer rates around 3% to 4% or even lower for new cars and slightly higher for used cars.

– Good Credit (690-719): Rates might be a bit higher, say around 4% to 5% for new cars.

– Average to Poor Credit (Below 690): Can see significantly higher rates, ranging from 6% to 15% or even higher in some cases, especially for used cars.

Loan Duration:

Shorter-term loans often have lower interest rates than longer-term loans. For instance, a 3-year loan might have a lower rate than a 6-year loan.

New vs. Used Cars:

New cars typically have lower interest rates compared to used cars. This difference is because used cars can be seen as riskier collateral than new cars.

Lender Type:

Traditional banks, credit unions, and online lenders might offer different rates. Credit unions, being not-for-profit organizations, often provide competitive rates to their members.

Federal Interest Rates:

The general economic environment, especially the rates set by the Federal Reserve, can influence auto loan rates. If the Federal Reserve raises its rates, auto loan rates might increase and vice versa.

Promotional Offers:

Sometimes, automakers or dealerships offer promotional financing rates, especially for new cars, which can be as low as 0% APR. However, these offers might be limited to borrowers with excellent credit and might come with other stipulations.

Location:

Rates can also vary slightly depending on your state or region.

Down Payment:

A larger down payment might secure a better rate since it reduces the lender’s risk.