Is 9% a good car loan rate?

[DelEvelyn]

A 9% car loan rate is not considered good for most buyers with prime credit in today's market; it is above the current national average. For context, the average interest rate for a new car loan was approximately 7.18% in Q4 2023, according to Experian data. A "good" APR is typically at or below this average, with the best rates often reserved for those with excellent credit (scores of 720+). Your specific rate is determined by credit score, loan term, vehicle age, and lender.

Credit score is the most significant factor. Lenders use it to assess risk. Borrowers with scores above 720 often qualify for rates significantly below 7%. For those with scores in the mid-600s (considered "fair" credit), offers around 9% to 12% are more common. A 9% rate for someone with a 660 score, as mentioned in some contexts, could be a competitive offer, but it's not a benchmark for "good" credit.

The loan term dramatically impacts the total cost. A 9% rate on a long 72-month loan accumulates much more interest than on a 36-month loan. Always calculate the total interest paid over the life of the loan, not just the monthly payment.

Credit Tier (FICO Score)	Typical New Car Loan APR Range (Q4 2023)
Super Prime (780-850)	5.61% - 6.88%
Prime (661-780)	7.09% - 9.34%
Non-Prime (601-660)	9.92% - 14.97%
Subprime (501-600)	14.83% - 19.87%

Source: Experian State of the Automotive Finance Market Report.

Dealership financing can sometimes offer promotional rates (like 0% for qualified buyers), but these are usually tied to specific models and shorter terms. Credit unions and online lenders frequently offer more competitive standard rates. Getting pre-approved from one before visiting the dealer gives you a strong negotiating baseline.

Ultimately, while 9% is not an alarming rate for someone with average credit, it should be a signal to shop around. For anyone with a score above 700, securing a rate under 7% is a realistic and financially savvy goal that can save thousands over the loan term.

[Zoey]

I just bought a car last month, and my credit score is around 680. I got offers from 8.5% to 11%. The 8.5% came from my local credit union where I’ve been a member for years. The dealership initially offered 10.2%.

I took the credit union’s pre-approval letter to the dealer, and they managed to match it to get my business. It took some back-and-forth. So, is 9% good? For me, it would have been okay, but I’m glad I pushed and didn’t just accept the first offer. You absolutely have to shop around—it’s not just about the car price.

[SanZane]

As a financial planner, I advise clients to view auto loans through the lens of total cost. A 9% rate isn't catastrophic, but it's inefficient. On a $35,000 loan over 60 months, you'd pay about $8,500 in interest at 9%. At 5%, that interest drops to under $4,700.

That difference of nearly $4,000 is money that could be invested or used to pay down higher-interest debt. If you're being offered 9%, your credit profile likely has room for improvement. Before your next vehicle purchase, focus on paying down credit card balances and ensuring your credit report is error-free. A 50-point score improvement can dramatically change your rate offer.

[Bryce]

Don’t just look at the rate—look at the source. Big banks and dealer financing have higher overhead, which can mean higher rates for you. My advice? Start with a credit union. They are not-for-profit and often provide the most competitive rates to their members.

I’ve been with my credit union for a decade. When I refinanced my truck, they offered me 5.9% while the originating bank was at 9.2%. It was a straightforward process. A 9% rate in today’s market tells me you might not be looking in the right places. Membership is usually easy to qualify for based on your location or employer.

[DiRhett]

Let’s be real: whether 9% is good depends entirely on your credit history. My score was in the low 600s after some past financial struggles. When I needed a reliable car for work, the best offer I got was 11%. If I had been offered 9%, I would have taken it in a heartbeat.

For someone with excellent credit, 9% is high. But in the non-prime credit tier, it’s a competitive rate. The key is to understand your own standing. Use free credit score services to check your FICO Auto Score. If you’re in the fair credit range (low to mid-600s), a 9% APR is a solid offer. Just focus on making every payment on time to rebuild your credit for next time.