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Average Car Loan Interest Rates by Credit Score
Average auto loan interest rates can provide an idea of what APR to expect for your auto loan.
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NerdWallet's content is fact-checked for accuracy, timeliness and
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editors to ensure the information is as clear and complete as possible.
Shannon Bradley is a NerdWallet authority on autos and home services. Before joining NerdWallet in 2021, Shannon spent 30-plus years as a writer, content manager and marketer in the financial services industry. In these roles, she developed financial expertise and created educational content covering a wide range of personal and business topics. Shannon is based in Newburgh, Indiana.
Julie Myhre-Nunes leads the Auto Loans, Student Loans and Home Services teams at NerdWallet. Julie has over a decade of experience in personal finance. Before joining NerdWallet, she led editorial teams at Red Ventures and several startups. Her personal finance insights have been featured in Forbes, The Boston Globe and CNBC, while her writing has appeared in USA Today, Business Insider, Wired Insights and more.
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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.
Did you know...
The "one big, beautiful bill," signed into law in July 2025, includes an auto loan interest tax deduction. Auto loan borrowers can deduct up to $10,000 a year for car loan interest for tax years 2025-2028, whether they claim the standard deduction or itemize. The deduction is available only for new cars with final assembly in the U.S., and the vehicle must be for personal use. It begins to phase out for individuals with modified adjusted gross incomes over $100,000 ($200,000 for joint filers).
Consumer credit reporting company Experian releases average auto loan interest rates in its quarterly Automotive Finance Market report. In the third quarter of 2025, the overall average auto loan interest rate was 6.56% for new cars and 11.40% for used cars
Source: Experian Information Solutions, 3rd quarter 2025. Based on VantageScore credit scoring model.
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.
🤓Nerdy Tip
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.
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.
Some sources provide average auto loan interest rates on a monthly basis, but they aren’t broken down by credit score. In December 2025, automotive site Edmunds.com listed the average car loan interest rate for November 2025 as 6.6% APR for new car loans and 10.6% APR for used car loans. Data company Cox Automotive gave the volume-weighted average rate for October 2025 as 9.52% for new cars and 14.26% for used cars in its Auto Market Snapshot. Cox Automotive rates are sales-weighted averages based on information from Dealertrack, a software used by auto dealerships.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account factors like maximum rates, variety of loan options, visibility of borrower requirements, accessibility, speed of funding, fees and more.
Best for borrowers with good or excellent credit who want fast approval and funding to buy a new car.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account factors like maximum rates, variety of loan options, visibility of borrower requirements, accessibility, speed of funding, fees and more.
4.5
Est. APR:
Annual percentage rate (APR) represents the true cost of
borrowing money. It is your interest rate plus any loan fees,
and is expressed as a percentage.
Annual percentage rate (APR) represents the true cost of
borrowing money. It is your interest rate plus any loan fees,
and is expressed as a percentage.
6.74 - 15.24%
Term: 24 - 84 months
You will be redirected to the partner's website.
The terms presented here are estimated and provided solely to assist you
in finding a great lender. The terms may vary based on the partner's terms
and conditions.
You will be redirected to the partner's website
The terms presented here are estimated and provided solely to assist you in finding a great lender. The monthly payment amount, Annual Percentage Rate (APR), and any other terms are based on standard Consumers Credit Union rates and terms for your NerdWallet provided credit score, zip code, and the other self-provided information. These terms may vary based on your credit history, your individual income, or other terms of the lender.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account factors like maximum rates, variety of loan options, visibility of borrower requirements, accessibility, speed of funding, fees and more.
Best for applicants who want to compare multiple new car purchase loan offers.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account factors like maximum rates, variety of loan options, visibility of borrower requirements, accessibility, speed of funding, fees and more.
4.0
Est. APR:
Annual percentage rate (APR) represents the true cost of
borrowing money. It is your interest rate plus any loan fees,
and is expressed as a percentage.
Annual percentage rate (APR) represents the true cost of
borrowing money. It is your interest rate plus any loan fees,
and is expressed as a percentage.
6.24 - 29.90%
Term: 24 - 84 months
You will be redirected to the partner's website.
The terms presented here are estimated and provided solely to assist you
in finding a great lender. The terms may vary based on the partner's terms
and conditions.
You will be redirected to the partner's website
The terms presented here are estimated and provided solely to assist you in finding a great lender. The monthly payment amount, Annual Percentage Rate (APR), and any other terms are based on standard Consumers Credit Union rates and terms for your NerdWallet provided credit score, zip code, and the other self-provided information. These terms may vary based on your credit history, your individual income, or other terms of the lender.
Auto Credit Express
New car purchase loan
Not yet rated
Best for new-car buyers who can’t qualify for a lower-rate loan through a traditional lender and need help finding a dealer with subprime lending.
Min score: 525
Amount: $5,000 - $50,000
Min. Amount$5,000
Max. Amount$50,000
Not yet rated
Est. APR:
Annual percentage rate (APR) represents the true cost of
borrowing money. It is your interest rate plus any loan fees,
and is expressed as a percentage.
Annual percentage rate (APR) represents the true cost of
borrowing money. It is your interest rate plus any loan fees,
and is expressed as a percentage.
N/A - N/A
Term: 24 - 84 months
You will be redirected to the partner's website.
The terms presented here are estimated and provided solely to assist you
in finding a great lender. The terms may vary based on the partner's terms
and conditions.
You will be redirected to the partner's website
The terms presented here are estimated and provided solely to assist you in finding a great lender. The monthly payment amount, Annual Percentage Rate (APR), and any other terms are based on standard Consumers Credit Union rates and terms for your NerdWallet provided credit score, zip code, and the other self-provided information. These terms may vary based on your credit history, your individual income, or other terms of the lender.
When you know your credit score and the average car loan interest rate you might qualify for, you can use an auto 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.
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