The average interest rate on a 52 month loan for $15,00 car is 3.5% according to our research. That means that you will be paying around $1,400 in interest over the course of the year long loan period which works out to an APR of 5.7%. The average interest rate is a pretty good indication of the general cost of borrowing.
For example, if you have to borrow $500 for three years at an APR of 12%, and you pay it back over 36 months, then your monthly payments will be around $220. The total amount paid would be about $5500, whereas with an APR that’s half as high (in this case six percent) your repayments would be only $130 per month or just over two thousand dollars in total.
Furthermore, these rates are often negotiable so if you need more information on what sort of deal can work best for either yourself or the dealership then it might make sense for both parties to get together before agreeing on terms.