Getting a new car like the 2021 Honda CR-V is an exciting thought. For most of us, when we envision ourselves in our new car, we’re driving it down long swooping roads, enjoying the experience.
What we don’t often think about first is how and what we’re going to have to pay.
What Does APR Mean?
We often get people asking us here at Hall Honda Virginia Beach about APRs on car loans. After all, it’s not the most straightforward topic to understand. We’re here to help thanks to our Honda financial center.
Firstly, APR stands for annual percentage rate. It’s the cost you pay each year to borrow money which goes toward paying for your auto loan. So, what is considered a good APR?
Ideal APR Ratings
This is where it gets a little more complicated. In general, the average APR for a car loan of a new car is around 4.96%, assuming you have excellent credit. However, we realize that not everyone is working with excellent credit.
Because your credit score is tied to your APR, it’s advisable to research and understand your credit score before researching your car loans. The breakdown is simple. Bad credit stops at a score of 629, fair ranges from 630-719, good 690-719, and excellent 720-850.
People with bad credit will likely have a difficult time getting approved for a loan. However, here at your Virginia Beach Honda dealership, we do have tools to help.
If you have good or excellent credit, you can expect to pay around 5%. However, that number jumps up considerably to around 11% if you have fair credit.
Get Help with Financing Today
Figuring out all the nitty-gritty details of getting a new car can be a hassle. With all the research and information out there, it can be hard to know where to start. Luckily, here at Hall Honda Virginia Beach, we work tirelessly to help you with all your automotive needs, even when it comes to financing.
From no credit to excellent credit, we can help you find the right model for you and how to best afford it without breaking the bank. Visit us today to explore all your options.
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