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A good credit score can save you as much as $10,000 on a car. A bad score can cost you that much. Your credit score largely determines how much interest you pay on a car loan. And interest rates are running high. The average new car loan was $40,366 in 2023. But the total cost of the loan can range from $46,419 to $57,339, depending on the interest rate, according to an analysis by the personal finance site MarketWatch Guides. The average used car loan was $26,685. Factor in the interest, though, and the total cost of that loan ranges from $32,205 to $43,812. Interest rates on car loans are as high as they’ve been in years. The average rate on a new car ranges from 5.4%, for those with the highest credit scores, to 15.6%, for those with the weakest credit, according to Experian. For used cars, the average interest rate ranges from 6.8% to a whopping 21.6%, depending on your credit score. Featuring Kimberly Palmer of NerdWallet, Brian Moody of Cox Automotive Inc., Lisa L. Gill of Consumer Reports and David Straughan of MarketWatch.

You can get a car with a bad credit score, but it could cost $10,000 more

You can get a car with a bad credit score, but it could cost $10,000 more

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