Get Directions

15701 West Colfax Ave, Golden, CO, 80401Denver

What is a Good Interest Rate for Your Car Loan?

Car finance paperwork


If you’re shopping for a car in the Denver area, you have no doubt asked yourself questions such as:

  • What is a good car loan rate?
  • What is the average interest rate on a car loan?
  • How can I get the best interest rate on a car loan?

The finance team at Planet Honda is here to answer these questions and help you get approved for the financing you need to buy a new Honda or a high-quality used car. Learn more about car loans based on credit scores and the Annual Percentage Rate (APR), and then apply for financing with us online to get pre-approved today!

New and Used Car APR

The table below shows you what the average interest rate on a car loan is, whether you plan to buy a new or used car in the Lakewood area.

Average Credit Score for New Car Annual Percentage Rate Average Credit Score for Used Car 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%

How to Get the Best Interest Rate on a Car Loan?

When shopping for the best interest rate on a car loan, the first thing you should do is check your credit score. The higher your credit score is, the lower your interest rate will be. When applying for a loan, you should always be prepared to negotiate if the first offer you receive seems higher than you expected. At Planet Honda, we work with a variety of lenders, so the initial offer won’t be the only one available.

What is a good car loan rate? As you can see in the chart above, it could be anywhere between 3.17% and 13.76%, depending on your credit score. If you have no credit or a bad credit rating, our financing specialists can provide you with options to help you get behind the wheel of the vehicle you want with financing that is right for your budget.

What is the Average Interest Rate on a Car Loan?

A three-year car loan will have an average interest rate of around 3% to 4.5%. Your credit score and where you are getting the loan will factor into the interest rate you are offered. The finance experts at Planet Honda recommend that you shop around or get pre-approved to compare car loans and interest rates available in the Arvada area. You need to be careful when considering what’s right for your budget.

Get Flexible Auto Financing Options at Planet Honda

Whether you’re looking into guaranteed car financing or used car leasing, the finance professionals at Planet Honda can help. In the meantime, use our convenient online payment calculator to find out what your monthly payments will be. If you have any questions or would like more information, please feel free to contact us.

More from Planet Honda

  • 2022 Honda Accord Interior Features

      If you’re in the market for a brand new sedan to enhance your Denver travels, then you’ll find the 2022 Honda Accord interior offers everything you need and more. With a relaxing and versatile cabin along with stunning standard and available features, this Honda sedan meets your needs to keep moving with ease. Get…

  • 2022 Honda Odyssey Interior Features

    If you need an accessible, family-friendly van that can keep you moving with ease around Denver, then you’re sure to be impressed with the spacious 2022 Honda Odyssey interior. With enhanced seating and storage space to accommodate your daily travels, along with many advanced cabin technology and convenience features, this Honda van is sure to check…

  • 2021 Honda Passport, Great Performance and Price!

    Denver drivers looking for the perfect midsize SUV that offers plenty of exciting enhancements are sure to love the 2021 Honda Passport. No matter if you’re new or familiar with this stunning Honda lineup, you’ll appreciate the competitive pricing and advanced performance and cabin features you expect in a Honda vehicle. Discover which suits you best…

Planet Honda 39.7301721, -105.177084.