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Average car loan interest rates by credit score may give you an idea of the rate a lender will offer if you’re shopping for a new or new-to-you vehicle.
Rates for auto loans are given as an annual percentage rate, or APR, and depend on a number of variables, including your income, your debt, and your credit score.
However, the most important factor in determining the rate you’ll receive is probably your credit score. Your car loan interest rate will likely be lower the higher your credit score is because lenders believe you have a lower likelihood of defaulting on the loan.
Average car loan interest rates
|
Credit score |
Average APR, new car |
Average APR, used car |
|---|---|---|
|
Superprime: 781-850. |
3.84%. |
3.69%. |
|
Prime: 661-780. |
4.90%. |
5.47%. |
|
Nonprime: 601-660. |
7.25%. |
9.81%. |
|
Subprime: 501-600. |
10.11%. |
15.86%. |
|
Deep subprime: 300-500. |
12.93%. |
19.81%. |
|
Source: Experian Information Solutions. |
||
The average auto loan interest rate is 5. 16% for new cars and 9. Experian’s State of the Automotive Finance Market report for the third quarter of 2022 estimates a 34% interest rate for used cars.
You’ll have the best chance of obtaining a rate for new cars below 4% with a credit score of at least 780. For new cars, you can anticipate a rate above 10% if your credit score is lower than 501.
Find preapproved offers
| Learn More | Learn More | Learn More |
Min. credit score660 |
Min. credit score620 |
Min. credit score575 |
Est. APR6.49-12.49% |
Est. APR5.19-17.54% |
Est. APR3.69-21.00% |
Loan amount$5,000-$100,000 |
Loan amount$7,500-No max. |
Loan amount$8,000-$100,000 |
How to use average car loan interest rates
You can use our car payment calculator to determine the estimated monthly payment for different loan terms once you are aware of your credit score and the typical auto loan interest rate you may be eligible for.
Until you apply for a car loan and receive lender offers, you won’t know your exact rate, but you’ll have a general idea of it. Longer-term loans typically have higher interest rates than short-term loans. Get rates from several lenders and compare them to make sure you’re getting the best deal possible.
You might be able to refinance for a lower rate—and a lower payment—if you’ve already financed a car and your rate is higher than the average rate listed for your credit score. To compare rates, submit an application to refinance your auto loan with several lenders.
About the author: Shannon Bradley covers auto loans for NerdWallet. She worked as a financial education content writer for more than 30 years in the banking industry. Read more.
FAQ
What car loan interest rate can I get with a 650 credit score?
650 credit score auto loan interest rates According to Experian data, the average auto loan rate for near-prime borrowers was 6. 07% on new vehicle financing and 9. 80% on used vehicle financing in Q4 2021.
Is 653 a good credit score for a car loan?
A 653 FICO® Score is regarded as “Fair,” so is it a good credit score? With a 653 credit score, it can be somewhat challenging to obtain a mortgage, auto loan, or personal loan. Fair credit borrowers typically don’t get loans from lenders because it’s too risky.
What interest rate can I get on a car loan with a 660 credit score?
With a credit score between 660 and 669, the typical interest rate for a new car loan is 4. 03%. The majority of dealerships will promote numerous incentives, such as cash rebates, low interest rates, or exclusive lease offers, for purchasing a new vehicle.
What will a 650 credit score get me?
You have a credit score of 650, which puts you squarely in the “fair” range. Even though you may be able to obtain financial products like a mortgage or car loan, you will probably have to pay higher interest rates than someone who has better credit. The “good” credit range starts at 690.