Current Average Rates for New and Used Cars
Auto loan rates vary by credit score, vehicle type, loan term, and lender. The table below summarizes the most recent authoritative data available at the time of research. According to Experian Q1 2026 data, the average interest rate for a new car loan was 6.39% and for a used car loan was 11.43%.
These averages represent a wide range of borrowers. LendingTree, which reports offers made to its users, found average car loan offers ranging from 7.40% to 24.06% APR, depending on credit and vehicle condition.
Rates change over time, so use the figures here as a baseline, not a final quote. Your actual rate will depend on your credit profile and the lender's current pricing.
- New car average: 6.39% APR (Experian, Q1 2026)
- Used car average: 11.43% APR (Experian, Q1 2026)
- Typical range from LendingTree data: 7.40% to 24.06% APR
- Used car loans typically carry higher rates than new car loans, usually 1 to 3 percentage points higher
Sources: Experian, LendingTree
How Rates Vary by Credit Score Tier
Your credit score is the strongest factor in the rate you're offered. Experian's data shows a wide spread between the best and worst credit tiers.
The table below breaks down average new and used car APRs by credit tier, based on Experian Q1 2026 data. Super prime borrowers (781+) see the lowest rates, while deep subprime borrowers (300-500) face the highest.
| Credit Tier (Credit Score) | New Car APR | Used Car APR |
|---|---|---|
| Super prime (781 or above) | 4.55% | 6.30% |
| Deep subprime (300-500) | 16.01% | 21.77% |
Sources: Experian
Rate Differences Between New and Used Vehicles
Used car loans typically have higher interest rates than new car loans. Broadview Federal Credit Union notes the difference is usually 1 to 3 percentage points, because lenders consider used cars riskier collateral.
Regardless, you should expect to pay a higher rate on a used vehicle.
When comparing offers, remember that a slightly higher APR on a used car loan can add hundreds of dollars in interest over the life of the loan.
Sources: Broadview Federal Credit Union, Experian
Loan Term on Rates
Shorter loan terms usually come with lower interest rates, while longer terms like 72 months have higher APRs but lower monthly payments. The Consumer Financial Protection Bureau provides a helpful comparison: for a $20,000 loan at 4.75% APR, a 36-month term has a monthly payment of $597 and total interest of $1,498, while a 72-month term has a monthly payment of $320 and total interest of $3,024.
This illustrates a common trade-off: choosing a longer term to lower your monthly payment significantly increases the total interest paid—more than double in this example.
Before committing to a long term, calculate the total cost of the loan, not just the monthly payment.
| Term (months) | Monthly Payment | Total Interest Paid |
|---|---|---|
| 36 | $597 | $1,498 |
| 48 | $458 | $1,999 |
| 60 | $375 | $2,508 |
| 72 | $320 | $3,024 |
Sources: Consumer Financial Protection Bureau
Where to Find Up-to-Date Rates
Auto loan rates change regularly, so it's wise to check current benchmarks before you negotiate. The Consumer Financial Protection Bureau recommends getting financing offers from banks, credit unions, or auto dealers, and suggests obtaining quotes before visiting the dealer to get the best rates and terms.
Reliable sources for rate data include:
For the most accurate numbers, request personalized quotes from multiple lenders—your credit score and loan details will determine your actual rate.
- Experian publishes quarterly average rates by credit tier, as used in this guide.
- LendingTree and other online marketplaces show real customer offers.
- Credit unions often share current rate ranges on their websites.
Sources: Consumer Financial Protection Bureau
Factors That Can Lower Your Rate
Several strategies can help you secure a better rate. Since credit score is so influential, improving it before applying can make a big difference. Also, shorter loan terms typically come with lower rates, as noted earlier.
Shopping around is key: the CFPB warns that interest rates through dealers are generally higher because their rates often add additional interest to compensate them for handling financing. Getting quotes from banks, credit unions, and online lenders before stepping into a dealership can strengthen your negotiating position.
For those with subprime credit, the CFPB's research shows that the average subprime auto loan interest rate is between about 9% and 20% annually, depending on the type of lender. Comparing offers from different sources is especially important in this situation.
Sources: Consumer Financial Protection Bureau
Frequently asked questions
What is the average auto loan rate for a 60-month term?
These figures are across all terms, not just 60 months. Rates for a 60-month term would likely be close to these averages, but the exact rate you're offered depends on your credit score and lender.
Do used car loans always have higher rates than new car loans?
Generally, yes. Experian's data shows a larger average gap (about 5 points), but the general trend holds.
How does a 72-month term affect the interest rate?
Longer terms like 72 months usually come with higher APRs than shorter terms. The longer term lowers your monthly payment but significantly raises total interest.
What credit score do you need for the best auto loan rates?
To get the best rates, you generally need a credit score of 781 or above (super prime). Lower scores will see higher rates.
Can I get a low rate on a used car through a credit union?
Credit unions often offer competitive rates on used car loans. Your actual rate will depend on your credit score and the loan term.
How often should I check auto loan rates?
Auto loan rates can change frequently, so it's wise to check current rates a few weeks before you plan to buy. The Consumer Financial Protection Bureau recommends getting multiple quotes from banks, credit unions, and dealers, and checking rates before visiting the dealership to ensure you get a competitive offer.
Sources
- How do I compare auto loan offers? — Consumer Financial Protection Bureau
- Where can I get information on auto loan rates? — Consumer Financial Protection Bureau
- Rising car prices means more auto loan debt — Consumer Financial Protection Bureau
- Best Auto Loan Rates in August 2026 — LendingTree
- Average Car Loan Interest Rates by Credit Score — Experian
- Current Used Car Loan Rates: 2026 Guide — Broadview Federal Credit Union