At Bankrate, we work to guide you toward making more informed financial decisions. Although we follow strict guidelines, this post may mention products from our partners. Heres an explanation for . Bankrate logo.
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You can trust that Bankrate adheres to a strict editorial policy and is acting in your best interests. Our esteemed editors and reporters produce truthful and accurate content to assist you in making wise financial decisions.
We value your trust. Our editorial standards are in place to ensure that we fulfill our mission of giving readers accurate and unbiased information. To make sure the information you’re reading is accurate, our editors and reporters conduct extensive fact-checking on editorial content. Our editorial team and advertisers are separated by a wall that we uphold. Our editorial staff does not get paid directly by our advertisers.
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At Bankrate, we work to guide you toward making more informed financial decisions. Although we follow strict guidelines, this post may mention products from our partners. Heres an explanation for . Bankrate logo.
Bankrate, which was established in 1976, has a long history of assisting people in making wise financial decisions. By demystifying the financial decision-making process and empowering people to know what to do next, we’ve maintained this reputation for more than 40 years.
You can trust that Bankrate adheres to a strict editorial policy and is acting in your best interests. Our content is written by highly qualified professionals, and it is edited by specialists in the fields in which it is published, ensuring that it is impartial, truthful, and reliable.
In order for you to feel confident in how you’re managing your money, our banking reporters and editors concentrate on the topics that consumers care about most, such as the top banks, the most recent rates, various types of accounts, and money-saving advice. Bankrate logo.
You can trust that Bankrate adheres to a strict editorial policy and is acting in your best interests. Our esteemed editors and reporters produce truthful and accurate content to assist you in making wise financial decisions.
We value your trust. Our editorial standards are in place to ensure that we fulfill our mission of giving readers accurate and unbiased information. To make sure the information you’re reading is accurate, our editors and reporters conduct extensive fact-checking on editorial content. Our editorial team and advertisers are separated by a wall that we uphold. Our editorial staff does not get paid directly by our advertisers.
The editorial staff at Bankrate writes on behalf of YOU, the reader. Our aim is to provide you with the best guidance so that you can make wise decisions regarding your personal finances. To prevent advertisers from influencing our editorial content, we adhere to strict guidelines. Our editorial staff is not paid directly by advertisers, and all of our content is meticulously fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can be sure that the information is reliable and trustworthy. Bankrate logo.
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You have money questions. Bankrate has answers. For more than 40 years, our experts have been assisting you in becoming financially savvy. We continuously work to give customers the knowledge and resources necessary to be successful in their financial endeavors.
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Keep track of car loan interest rates because they frequently change. The interest rate on your loan determines how much you’ll have to pay each month. Additionally, a lower interest rate can result in savings of thousands of dollars. You can use our rate table to determine when is the best to purchase a new or used car.
Current auto loan interest rates
| Dates | 60-month new car | 48-month new car | 48-month used car | 36-month used car |
|---|---|---|---|---|
| 12/7/2022 | 6.05% | 6.04% | 6.66% | 6.35% |
| 11/30/2022 | 6.05% | 6.04% | 6.66% | 6.36% |
| 11/22/2022 | 6.06% | 6.05% | 6.63% | 6.34% |
| 11/16/2022 | 5.97% | 5.96% | 6.53% | 6.18% |
| 11/9/2022 | 5.78% | 5.76% | 6.31% | 6.00% |
| 11/2/2022 | 5.69% | 5.67% | 6.31% | 6.00% |
| 10/26/2022 | 5.63% | 5.61% | 6.22% | 5.88% |
| 10/19/2022 | 5.60% | 5.59% | 6.21% | 5.87% |
| 10/12/2022 | 5.56% | 5.55% | 6.18% | 5.84% |
| 10/5/2022 | 5.47% | 5.46% | 6.06% | 5.75% |
| 9/28/2022 | 5.16% | 5.15% | 5.71% | 5.43% |
| 9/21/2022 | 5.02% | 5.01% | 5.56% | 5.29% |
| 9/14/2022 | 5.07% | 5.06% | 5.61% | 5.34% |
How to calculate auto loan interest
Before agreeing to your next loan, it’s a good idea to research the interest rates on your anticipated auto loans. It will not only give you financial control, but it can also help you avoid paying more interest than necessary. You can figure out your auto loan interest rate in a few different ways:
What’s the best credit score for a low-interest loan?
You can get the best auto loan interest rates if your credit score is at least 740, which is regarded as being in very good standing. But even with a lower credit score, you might be able to get a good rate.
How can I get the best car loan interest rate?
Some lenders may offer higher interest rates or longer loan terms if your credit score is on the lower end, at 580 or lower, which can be risky. If you are not in a rush to buy a car, taking steps to raise your credit score can help you get a better interest rate and save hundreds or thousands of dollars.
What factors contribute to auto loan interest rates?
There are still decisions you can make to increase approval, even though it is true that the interest rate you will receive varies depending on the lender and is somewhat out of your control. Take into account the following factors and how they will impact loan approval and rates:
What’s the difference between new and used car interest rates?
Loans for more recent vehicles typically have lower interest rates than loans for older vehicles. Because they are less likely to breakdown and have a known depreciation rate, newer cars are seen as less risky by lenders. Additionally, the resale value of newer vehicles is more predictable than that of older vehicles, which lowers interest rates.
Average interest rate by loan type
Here are the interest rates for new and used cars as of October 5, 2022, as an illustration.
| Term | New | Used |
|---|---|---|
| 36 months | 5.42% | 5.75% |
| 48 months | 5.46% | 6.06% |
| 60 months | 5.47% | 7.16% |
2022 outlook for auto loan interest rates
The year 2022 has already shown to be challenging for American finance in every way. And, unfortunately, the automotive industry has not come out unscathed. The Federal Reserve’s decisions and the ongoing supply chain problems all have an impact on how much it will cost to finance your next vehicle.
The increased Fed rate, sitting at 3-3. Following the September meeting, your rates will be indirectly impacted by 25 percent. The federal funds rate, however, is not the only factor taken into account by lenders when setting their rates.
It results in an overall more expensive experience when coupled with the volatile state of the market for cars. According to Kelley Blue Book, the price of a new car reached $48,000 in June 2022.
Consider approaching your next loan with extra caution keeping all of this in mind. Be sure to apply for preapproval and shop multiple lenders.
What are other important car ownership costs to consider?
Costs associated with owning a car can be expensive in addition to monthly loan payments.
One of the more significant expenses associated with owning a car is car insurance. To choose the best auto insurance coverage for your requirements, make sure you are knowledgeable about auto insurance rates and the top auto insurance providers.
Also, consider maintenance and repair costs, which can start at around $100 per visit but vary by the make and model of your vehicle. Use Edmund’s car maintenance calculator to get an estimate of how much you’ll spend to maintain your vehicle.
Fuel expenses are another cost to keep in mind as you search for a new vehicle. If you’re unsure of how much to budget, visit FuelEconomy.gov to view the fuel economy or gas mileage and projected annual fuel costs for the year for the make and model of the vehicle you select.
You must also pay taxes, registration fees, and documentation fees when you buy a car. Every one, two, or three years, you must renew your registration; this costs money. Renewal fees and cycles vary by state.
Estimate your monthly payments with Bankrate’s auto loan calculator.
Ready to compare rates from top lenders?
FAQ
What is a good interest rate for a 72 month car loan?
The average 72-month auto loan rate is almost 0. Interest rates are 3% higher than the typical 36-month loan for new cars. For new cars, loans with shorter terms have lower interest rates. Loan termAverage interest rate60-month used car loan4. 17% APR72-month used car loan4. 07% APR.
What is a good interest rate on a car loan right now?
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 states that the percentage for used cars is 34%. You’ll have the best chance of obtaining a rate for new cars below 4% with a credit score of at least 780.
Is 4.25 A good auto loan rate?
The rule of thumb is that if your credit score is 700 or lower, 4 5% APR is considered good. In actuality, it’s about average for a typical auto loan. If your credit score is greater than 750, you may be able to find loans with interest rates as low as 2% to 3%.
Is 2.9% good for an auto loan?
If the interest rate on a new car you’re purchasing is 2 9% APR, you may be getting a bad deal. However, whether or not this is the lowest rate available will depend on a number of variables, including the state of the market, your credit history, and the manufacturer’s incentives currently available on the vehicle you want.