What is a good APR rate for car finance?

A good APR rate for car finance in the UK is generally considered to be between 9% and 12%. Compared with historical benchmarks, average interest rates offered across the market have increased by nearly 2% in recent years, largely due to broader economic conditions, including high inflation and rising base rates driven by the cost-of-living crisis.

Lenders have also tightened approval criteria, making financing at above 10% APR more common among average borrowers than in previous years. However, well-qualified applicants can still secure very competitive deals from prime lenders, so please speak with us to learn more about the APR you could be offered on car finance.