What Is a Good Rate for a Car Loan?

happy couple holding keys to their new car

A good interest rate on a new or used car is typically the lowest rate you can get, as that means that you pay less in interest over time and your monthly car payment is typically lower. Qualifying for a low auto interest rate depends on many different factors, primarily having to do with your credit score.

When you chat with the experts at our Toyota dealership near Miami, we’ll walk you through any auto financing options that you’re eligible for. The Toyota of Hollywood team will explain the car financing process and help you get the keys to your dream car with a payment plan that you’re comfortable with!

01

What Is a Good APR?

The Annual Percentage Rate (APR) includes the interest rate and fees that are tied to a loan. APR directly impacts your monthly payments, as the higher the APR, the higher your payments will likely be. You can often get a lower APR if you’re coming to the sale with a large down payment, as the higher the down payment, the less “risk” the lender is taking. The loan term, or length of time in which you’re taking out the loan, can also dictate the APR.

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What Is the Best Way to Finance a Car Right Now?

The best way to finance a car is to work with the experts at Toyota of Hollywood on putting together an affordable payment plan at the lowest interest rate you qualify for. The Toyota finance specialists at our local dealership have helped countless car-buyers claim superb auto financing and will show you how to combine these low rates with other perks, like new car specials.

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Is It Better to Finance Through a Dealer or a Bank?

If you’re deciding whether to get auto financing through a Toyota dealer, a bank or a credit union, it’s often best to start by looking at the interest rate and loan term you could get with each. From there, you can see who offers you the best financing plan on the new Tacoma or used Highlander that you want.

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What Are Subprime Loans?

Subprime loans help buyers with no credit or bad credit. They help buyers get the vehicle they need, but often at a higher interest rate, as lenders tend to think of subprime loans as higher risk. Chat with the Toyota finance team to learn more about subprime loans and how to qualify.

Whether you want to value a trade-in to put towards a new Toyota purchase, or you’d like to review the current Toyota financing rates, reach out to Toyota of Hollywood. We’ll answer any questions you have and serve as your informational resource throughout the auto financing process. We’re here to support you!