Average Car Loan Interest Rates by Credit Score
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When you’re getting ready to finance a new or used car, knowing the average car loan interest rate received by other recent car buyers is helpful. Having this information, especially for borrowers with a credit score similar to yours, gives you an idea of what rate to expect and a benchmark for comparing loan offers.
The auto loan interest rate you receive is based on several factors — such as your income, credit history and credit score. Your credit score is one of the biggest factors in determining the rate you’ll get, because lenders use it to gauge how likely you are to repay the loan. Generally speaking, the higher your credit score, the lower your car loan interest rate is likely to be.
Also, the type of vehicle you buy affects your interest rate. For example, used car loan interest rates are usually higher than new car interest rates.
Car loan interest rates and annual percentage rates, or APRs, aren't the same. Interest rate is the percentage you pay to borrow money. APR includes interest rate plus any fees charged by a lender. When comparing loan offers, make sure you are comparing the APR.
Average car loan interest rates by credit score
Consumer credit reporting company Experian releases average auto loan interest rates in its quarterly Automotive Finance Market report. In the third quarter of 2024, the overall average auto loan interest rate was 6.61% for new cars and 11.74% for used cars.
Experian also provides average car loan APRs by credit score, based on the VantageScore credit scoring model.
Credit score | Average APR, new car | Average APR, used car |
|---|---|---|
Superprime: 781-850. | 5.08%. | 7.41%. |
Prime: 661-780. | 6.70%. | 9.63%. |
Nonprime: 601-660. | 9.73%. | 14.07%. |
Subprime: 501-600. | 13.00%. | 18.95%. |
Deep subprime: 300-500. | 15.43%. | 21.55%. |
Source: Experian Information Solutions, 3rd quarter 2024. | ||
People with credit scores above 780 have the best shot of getting the lowest interest rates, with credit scores below 501 typically resulting in the highest interest rates.
How often do auto loan rates change?
When the Federal Reserve changes the federal funds rate, auto loan interest rates usually follow. Fed rate hikes that began in 2022 have pushed car loan interest rates to their highest level in years, but rates have slowly started to decrease.
» Compare auto loan rates to find the best lender for you
How to use average car interest rates
When you know your credit score and the average car loan interest rate you might qualify for, you can use a car loan calculator to input the rate and estimate the monthly payment for various loan terms.
Using averages for auto loan interest rates is a helpful tool, but you won’t know your actual interest rate until you apply for a loan and receive lender offers. Your rate can be affected by several factors, including length of the loan term and vehicle age.
To ensure you get the best deal possible, shop rates with multiple lenders and compare. Many lenders offer pre-qualification with a soft credit check, which gives you an idea of the rate you might qualify for without affecting your credit score.
If you’ve already financed a car and your rate is higher than the average rate listed for your credit score, you may be able to refinance for a lower rate — and a lower payment. Pre-qualify to refinance your auto loan with several lenders and get an idea of the rates you'll be offered.
