Average Car Loan Interest Rate by Credit Score
The average interest rate on a new-car loan is 6.56%, and on a used-car loan 11.40% (Experian, Q3 2025). But the average hides a huge spread: your rate is driven mostly by your credit score, which can swing a new-car APR from about 5% to 16%.
On a $42,000 new-car loan over 69 months, the gap between super-prime and deep-subprime credit is worth roughly $200 a month — about $14,000 in extra interest over the life of the loan. That is why checking your credit and shopping rates before you buy is one of the highest-value things a car shopper can do.
Average auto loan rate by credit score
Lenders price auto loans in credit-score bands. The table below shows Experian’s average APR for each band, for both new and used vehicles. Used-car rates run several points higher than new because used vehicles are riskier collateral.
| Credit tier | Score range | New car APR | Used car APR |
|---|---|---|---|
| Super prime | 781–850 | 5.18% | 6.82% |
| Prime | 661–780 | 6.70% | 9.06% |
| Near prime | 601–660 | 9.83% | 13.74% |
| Subprime | 501–600 | 13.22% | 18.99% |
| Deep subprime | 300–500 | 15.81% | 21.58% |
Average car payment, loan amount and term
Beyond the rate, monthly payments are shaped by how much you borrow and over how long. As of Q3 2025, the average new-car payment was $748 and the average used-car payment $532.
| Metric | New car | Used car |
|---|---|---|
| Average monthly payment | $748 | $532 |
| Average amount financed | $42,332 | $27,128 |
| Average APR | 6.56% | 11.40% |
| Average loan term | 69 months | 67 months |
How to get a lower rate
Because the rate spread between credit tiers is so wide, the biggest lever is your credit score — pulling your score from “near prime” into “prime” can cut a new-car APR by roughly three points. Get pre-approved through your own bank or credit union before visiting the dealer so you have a rate to beat, and treat the dealer’s financing offer as one quote among several.
A larger down payment, a shorter term, and buying new rather than used all lower the rate you are offered. Use the calculators below to see how a given APR translates into a monthly payment and total interest.
What is a good interest rate on a car loan?
For new cars, anything near or below the 6.56% average is competitive, and super-prime borrowers can reach roughly 5%. For used cars the average is 11.40%. If you are quoted well above these, check your credit and shop other lenders.
What credit score do you need for the best car loan rate?
The lowest rates go to “super prime” borrowers with scores of 781 and up, who averaged 5.18% APR on new cars. “Prime” credit (661–780) still qualifies for strong rates around 6.70%.
Why are used-car loan rates higher than new?
Used vehicles are riskier collateral — they can have hidden problems and depreciate less predictably — so lenders charge more. Across every credit tier, used-car APRs run several points above new-car rates.
How much does credit score affect a car payment?
A lot. On a typical $42,000 new-car loan, moving from deep-subprime to super-prime credit cuts the APR by more than 10 points, saving roughly $200 a month and about $14,000 over the life of the loan.