Average auto loan rates by credit score
Experian’s latest data shows how much the rate moves from tier to tier. Scores here are VantageScore 4.0; your lender may use a different model.
| Credit tier | Score range | New car APR | Used car APR |
|---|---|---|---|
| Super prime | 781–850 | 4.41%–5.44%* | 6.29% |
| Prime | 661–780 | 6.15% | 8.81% |
| Near prime | 601–660 | 9.71% | 13.93% |
| Subprime | 501–600 | 13.52% | 19.10% |
| Deep subprime | 300–500 | 16.11% | 21.62% |
Source: Experian State of the Automotive Finance Market, Q2 2026. Overall averages were 6.35% for new and 11.19% for used vehicles.
* Averages include all lenders, including manufacturer promotional financing. Rates without a manufacturer incentive may be higher. The upper end, 5.44%, is the national average credit union rate for a 60-month new car loan (NCUA, December 2025).
What that means in real dollars
Same car, same $30,000 loan, same 60 months. The only difference is the credit tier.
| Credit tier | APR | Monthly payment | Total interest |
|---|---|---|---|
| Super prime | 4.41%–5.44%* | $558–$572 | $3,484–$4,332 |
| Prime | 6.15% | $582 | $4,925 |
| Near prime | 9.71% | $633 | $7,988 |
| Subprime | 13.52% | $691 | $11,436 |
| Deep subprime | 16.11% | $731 | $13,878 |
Estimates using average new car APRs above. * Super prime shows the range from the Experian average to the average credit union rate. Your rate depends on your full application.
From the finance office: moving up just one tier, from near prime to prime, saves about $50 a month and over $3,000 in interest on this example. Paying down a credit card before you shop can be worth more than haggling over floor mats.
What auto lenders actually look at
Your score opens the door. These factors decide the rate and whether you’re approved.
- Your credit score. Often an industry-specific FICO Auto Score on a 250 to 900 scale, which weighs your past auto loans more heavily than a standard score.
- Your auto history. Paid-off car loans count in your favor. A past repossession is one of the toughest marks to overcome.
- Income and existing debt. Lenders check that the new payment fits your income alongside the debts already on your report.
- Down payment and trade equity. Money down lowers the amount financed and the lender’s risk, which can unlock a better rate or an approval.
- The vehicle and the term. Newer vehicles and shorter terms usually earn lower rates. Older, high-mileage vehicles and long terms cost more.
- Stability. Time at your job and address helps, especially when your credit is thin or rebuilding.
Estimate your payment
Plug in a loan amount, term and APR to see the payment and total interest. Try your tier’s rate, then the next tier up.
8 ways to get a better rate
Know your score before you shop.
Pull your free reports, fix errors early and know your tier, so the rate you’re offered doesn’t surprise you.
Get preapproved for a benchmark.
A preapproval from your bank or credit union gives you a rate to compare. Dealers can often beat it, because they submit to several lenders at once.
Rate-shop inside a short window.
Most scoring models count multiple auto loan inquiries within a short period, typically 14 to 45 days depending on the model, as a single inquiry.
Put money down and keep the term reasonable.
Both lower your rate and keep you from owing more than the car is worth.
Lift your credit freezes a day ahead.
A frozen report stops the lender from approving you. Refreeze once the deal is funded.
Bring proof with you.
Recent pay stubs, proof of residence and your insurance card speed up approval, especially if the lender asks for verification.
Read the numbers before you sign.
Check the APR, term, amount financed and total of payments. Optional protection products can be valuable, but they are optional: ask what each costs and covers.
Refinance when your credit improves.
If your score climbs a tier after a year of on-time payments, a refinance can lower your rate.
Keep reading
Last reviewed: Next scheduled review: January 2027