Auto Loan Rates by Credit Score: New and Used Car APR Averages
Credit score is the biggest single factor in the rate a lender offers. Here are the latest averages by tier and what a dealer can add on top.
Average auto loan rates in the second quarter of 2026 ranged from 4.41% APR for new cars bought by borrowers with super prime credit to 21.62% for used cars bought by deep subprime borrowers, according to Experian’s State of the Automotive Finance Market data. The overall averages were 6.35% for new-car loans and 11.19% for used-car loans.
These are averages across millions of loans. The rate you are offered also depends on the loan term, down payment, the car’s age and the lender.
What is the average car loan rate for each credit score?
Experian groups borrowers into five tiers using VantageScore 4.0. The figures below are for Q2 2026, from Experian’s rates by credit score.
| Credit tier | Score range | New car APR | Used car APR |
|---|---|---|---|
| Super prime | 781 to 850 | 4.41% | 6.29% |
| Prime | 661 to 780 | 6.15% | 8.81% |
| Near prime | 601 to 660 | 9.71% | 13.93% |
| Subprime | 501 to 600 | 13.52% | 19.10% |
| Deep subprime | 300 to 500 | 16.11% | 21.62% |
| All borrowers | 6.35% | 11.19% |
Average rates include promotional financing from automakers’ captive lenders, such as 0% or 1.9% offers on selected models. Those offers pull the new-car averages down, especially in the top tiers.
Why are used car loans more expensive?
Used-car loans carry higher rates in every tier, by about 2 to 6 percentage points in the Q2 2026 data. Lenders price in the car’s lower and less predictable resale value, and automakers rarely subsidize used-car rates the way they do for new models.
Older and higher-mileage cars often get higher rates still, and some lenders will not finance cars past a certain age or mileage.
How much does the rate change the total cost?
On a $35,000 loan over 60 months, the difference between tiers adds up to thousands of dollars. These figures are simple amortization at the Q2 2026 average new-car rates, before taxes and fees.
| APR | Monthly payment | Total interest |
|---|---|---|
| 4.41% (super prime) | About $651 | About $4,060 |
| 6.15% (prime) | About $679 | About $5,750 |
| 9.71% (near prime) | About $739 | About $9,320 |
| 13.52% (subprime) | About $806 | About $13,340 |
| 16.11% (deep subprime) | About $853 | About $16,190 |
Longer terms lower the payment but raise total interest and keep you owing more than the car is worth for longer. Our guide to an upside-down car loan explains that risk.
What else affects the rate I am offered?
Credit score sets the starting range, and several other factors move the rate within it. Lenders price the loan itself as well as the borrower.
- Loan term. Longer terms, such as 72 or 84 months, often carry higher rates than 36 to 60 months.
- Down payment. A larger down payment lowers the loan-to-value ratio, which lenders see as less risky.
- Vehicle age and mileage. Older used cars usually get higher rates than late-model ones.
- Lender type. Banks, credit unions, automaker captive lenders and finance companies price loans differently.
- Income and debts. Your debt-to-income ratio and job history affect approval and pricing.
What do banks charge, according to the Federal Reserve?
The Federal Reserve’s G.19 consumer credit release tracks rates at commercial banks. In its October 7, 2026 release, the average rate on a 60-month new-car loan at commercial banks was 7.54% for August 2026, and 7.17% for a 72-month loan.
The Fed figures are an average for bank loans across all borrowers, so they do not line up exactly with Experian’s tiers, which include credit unions, captive lenders and finance companies.
Can a dealer mark up my loan rate?
Yes. When you finance through the dealer, the lender quotes the dealer a “buy rate,” and the rate you are offered may be higher so the dealer earns extra, as the Consumer Financial Protection Bureau explains. Some lenders and automakers cap how much a dealer can add.
Dealer financing is not always worse. Automaker promotional rates are only available through the dealer, and dealers can sometimes find a lender that approves a borrower a bank turned down. The point is to have a comparison.
- Check your credit report and score before you shop.
- Get a written preapproval from a bank or credit union for the amount and term you want.
- Ask the dealer to beat that rate, and compare the APR and total finance charge, not only the monthly payment.
- Read the retail installment contract before signing and confirm the APR matches what you agreed.
Bottom line
Know your credit tier and the current average for it before you walk in, and bring a preapproval so a marked-up rate is easy to spot. Interest on some new-car loans may also be deductible for 2025 to 2028; see our explainer on the car loan interest deduction. This page reports published averages and is not financial advice.
FAQ
Which credit score do auto lenders use?
Lenders use different models, including FICO Auto Scores and VantageScore. Experian’s tiers above use VantageScore 4.0, so your number from another model may place you in a different tier.
Does shopping for a car loan hurt my credit?
Several auto loan inquiries within a short window are usually treated as one for scoring purposes. Do your rate shopping within a couple of weeks to limit the effect.
Is 0% financing really free?
The loan has no interest, but the automaker may offer a cash rebate as an alternative. If you take 0%, you may give up that rebate, so compare both options on total cost.
Can I refinance a high-rate car loan later?
Often yes, if your credit improves or rates fall. Check for prepayment penalties and fees before you refinance.
