Current Auto Loan Rates: Averages by Credit Score

Average New vs. Used Car Loan Rates

When you finance a car, the interest rate you pay often depends on whether you're buying new or used. Lenders typically view used cars as riskier collateral because they depreciate faster and may have more wear and tear, so used car loans usually carry higher rates.

Data from LendingTree's marketplace for Q2 2026 shows that average new car APRs range from 7.40% for excellent credit (800 and above) to 21.54% for poor credit (under 580). For used cars, the same data shows a range of 8.03% to 24.06% for the same credit bands.

The difference between new and used rates can be significant, but that doesn't mean a used car loan is always more expensive. A buyer with excellent credit might receive a used car rate that is lower than the average new car rate. It's important to compare quotes based on your own situation.

• New car APRs (Q2 2026, LendingTree): 7.40% – 21.54%
• Used car APRs (Q2 2026, LendingTree): 8.03% – 24.06%
• Rates vary by lender, credit score, vehicle age, and loan term.

Sources: LendingTree

Rate Ranges by Credit Score

Your credit score is one of the strongest signals lenders use to decide what interest rate to offer. Borrowers with higher scores generally qualify for lower rates, while those with lower scores face higher rates or may need to seek specialized lenders.

According to Experian data for Q1 2026, the average new car APR for super prime borrowers (scores 781–850) was 4.55%, and the average used car APR was 6.30%. At the other end of the spectrum, deep subprime borrowers (scores 300–500) saw average new car APRs of 16.01% and used car APRs of 21.77%.

For subprime borrowers overall, the Consumer Financial Protection Bureau (CFPB) reports that subprime auto loan interest rates typically range from about 9% to 20% annually, depending on the type of lender. This figure comes from CFPB research and may reflect a broader period than the Q1 2026 Experian data.

The table below summarizes the average APRs by credit band for new and used car loans, based on the two most extreme credit bands from Experian's Q1 2026 data.

Sources: Consumer Financial Protection Bureau, Experian

Rates by Loan Term

Loan term is the length of time you have to repay the loan, commonly 36, 48, 60, or 72 months. In general, longer loan terms come with higher interest rates. Lenders add a premium for the added risk of a longer repayment period, and the longer the term, the more time there is for the borrower's financial situation to change.

Exact term-by-term average APRs are not consistently reported across the authoritative sources. For example, Bankrate's survey as of August 5, 2026, reports an average new car APR of 6.98% for a 60-month loan, but it does not provide a full term comparison across all common terms. Similarly, ValuePenguin provides average rates for strong-credit borrowers by term: approximately 4.21% for 36 months, 4.31% for 48 months, 4.37% for 60 months, and 4.45% for 72 months for new car loans. However, these figures are for borrowers with the strongest credit only and may not apply to all buyers.

When comparing terms, keep in mind that a lower monthly payment on a longer term can end up costing more in total interest over the life of the loan. Evaluate both the rate and the total cost when choosing a term.

• Longer loan terms generally mean higher APRs.
• Shorter terms often have lower rates but higher monthly payments.
• Term-specific averages vary by source; check methodology and target credit profile.
• Compare total interest paid over the term, not just the monthly payment.

Sources: Bankrate, ValuePenguin

How Auto Loan Rates Are Determined

Auto loan rates are set by lenders based on a combination of factors, with the borrower's credit score as a primary determinant. Lenders use credit scores to assess the likelihood that you'll repay the loan on time. A higher score typically signals responsible credit behavior, which qualifies you for lower rates.

Beyond credit, lenders consider the loan term, the amount financed, the vehicle's age and value, and the size of your down payment. Economic conditions also play a role: auto loan rates tend to be influenced by the Federal Reserve's federal funds rate, which affects the cost of borrowing for banks and, in turn, the rates they offer to consumers.

Because these factors interact, the rate you're quoted can be different from a published average. It's always wise to compare offers from multiple lenders and to ask about any fees that might be included in the APR.

Sources: LendingTree, Experian

Where to Find Authoritative Rate Data

Several organizations publish reliable auto loan rate data based on large samples or actual market activity. These sources are useful for understanding typical rates and spotting trends.

Experian's State of the Automotive Finance Market is a widely cited benchmark, providing average new and used car APRs by credit band. Bankrate surveys the ten largest banks and thrifts to produce weekly rate averages. LendingTree publishes APRs offered to borrowers through its marketplace, while ValuePenguin aggregates industry data and provides term-specific averages for strong credit.

For a regulatory perspective, the Consumer Financial Protection Bureau (CFPB) has published research on subprime auto loan rates, though its data may not be as current as commercial sources.

When you look at rate data, check the publication date. Rates can change quickly with economic conditions, and old averages may not reflect today's market.

• Experian: State of the Automotive Finance Market reports
• Bankrate: weekly surveys of large banks
• LendingTree: real marketplace APRs
• ValuePenguin: term-specific averages for strong credit
• CFPB: subprime lending research
• Always note the date of the data.

Sources: Consumer Financial Protection Bureau, LendingTree, Bankrate, ValuePenguin, Experian