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If you’re in the market for a new or new-to-you vehicle, average car loan interest rates by credit score may give you an idea of what rate to expect from a lender.
Auto loan rates are provided as an annual percentage rate, or APR, and are based on several factors, such as your income and debt, as well as your credit score.
But your credit score is likely the biggest factor in determining which rate you’ll get. The higher your credit score, the lower your car loan interest rate will probably be, because lenders perceive you as less likely to default on the loan.
Average car loan interest rates
Average APR, new car
Average APR, used car
Deep subprime: 300-500
Source: Experian Information Solutions
The average auto loan interest rate is 3.64% for new cars and 5.35% for used cars, according to Experian's State of the Automotive Finance Market report for the third quarter of 2021.
With a credit score above 780, you’ll have the best shot to get a rate below 3% for new cars. If your credit score is less than 601, you can expect a rate above 9% for new cars.
» MORE: Check your credit score for free
How to use average car loan interest rates
Once you know your credit score and the average car loan interest rate you might qualify for, you can use our car payment calculator to estimate the monthly payment for various loan terms.
You won’t know your actual rate until you apply for a car loan and receive lender offers, but you'll have a general idea of the rate. You can expect to pay higher interest rates for longer-term loans than short ones. To ensure you get the best deal possible, get rates from multiple lenders and compare.
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. Apply to refinance your auto loan with several lenders to see the rates you're offered.