Quick Answer: Auto Loan Rates by Credit Score in 2026
The average auto loan APR by credit score in 2026 ranges from 4.41% for superprime borrowers (781+) to 16.11% for deep subprime (300-500), according to Experian's most recent State of the Automotive Finance Market report (Q2 2026). Across all credit profiles, the same report puts the average new-car APR at 6.35%, with used-car loans averaging 11.19% APR.
On a $30,000, 60-month loan at those tier-average rates, the gap between superprime and deep subprime credit costs roughly $173 more per month and $10,394 in extra interest. At the same averages, moving up one tier before you finance saves $1,441 to $3,448 in interest on that loan, depending on the tier you start from.
Key Takeaways
- Average new-car APR runs 4.41% at superprime (781+) to 16.11% at deep subprime (300-500) — an 11.70-point spread, per Experian's Q2 2026 State of the Automotive Finance Market
- That spread costs about $173 more per month and $10,394 in extra interest on a $30,000, 60-month loan — run your own score and term to see your figure
- One point can change your tier average: 660 falls in near-prime (9.71% average, $633/month), while 661 falls in prime (6.15%, $582/month) — about $51 per month and $3,060 in interest. The 600/601 line is worth more still: about $57 per month and $3,448 between the subprime and near-prime averages
- Credit unions averaged about 2 percentage points below banks on new-car loans in NCUA's latest comparison (December 2025); NCUA does not break its averages out by credit score, so get a credit-union quote to compare
- Rate shopping is free inside the de-duplication window — 45 days on newer FICO versions, 14 days on older FICO versions and VantageScore — so multiple auto inquiries count as one
- Used-car money is structurally dearer than new: 11.19% average used APR against 6.35% average new across all credit profiles in the same Q2 2026 report
Jump to Your Credit Score
Looking for a specific score? Each row links to a detailed breakdown of the rate and monthly payment you can expect at that score.
| Your Credit Score | Credit Tier | Avg New-Car APR (Q2 2026) | Est. Monthly Payment* |
|---|---|---|---|
| 800 credit score | Superprime (781-850) | 4.41% | $558 |
| 750 credit score | Prime (661-780) | 6.15% | $582 |
| 700 credit score | Prime (661-780) | 6.15% | $582 |
| 660 credit score | Near-prime (601-660) | 9.71% | $633 |
| 650 credit score | Near-prime (601-660) | 9.71% | $633 |
| 620 credit score | Near-prime (601-660) | 9.71% | $633 |
*Estimated payment on a $30,000, 60-month new-car loan at the tier's Q2 2026 average APR (Experian State of the Automotive Finance Market). Your actual rate depends on the lender, loan term, down payment, and vehicle.
2026 APR by Credit Tier (At a Glance)
- Superprime (781-850): 4.41% avg new / 6.29% avg used (lowest tier averages)
- Prime (661-780): 6.15% avg new / 8.81% avg used
- Near-prime (601-660): 9.71% avg new / 13.93% avg used (3.56 points above prime on new cars)
- Subprime (501-600): 13.52% avg new / 19.10% avg used (3.81 points above near-prime on new cars, the largest step)
- Deep subprime (300-500): 16.11% avg new / 21.62% avg used (highest tier averages)
Source: Experian, Q2 2026 State of the Automotive Finance Market. Experian places borrowers in these tiers by VantageScore 4.0.
2026 Auto Loan Rates by Credit Tier (VantageScore 4.0)
Lenders group borrowers into five credit tiers. The table below gives Experian's Q2 2026 average APR for each tier, new and used, from its State of the Automotive Finance Market. Experian places borrowers in these tiers by VantageScore 4.0; a lender that prices on a FICO score may draw the lines differently. These are averages across all loans in each tier, not quotes, so use them to sanity-check any offer you receive.
| Credit Tier | Score Range | Avg New Car APR | Avg Used Car APR |
|---|---|---|---|
| Superprime | 781 - 850 | 4.41% | 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% |
About These Averages
An average sits in the middle of a wide spread. Rates vary by lender, loan term, down payment, vehicle age, and geographic location, so your quote may land above or below your tier's average. Always shop multiple lenders to find your best rate.
Understanding the Credit Tiers
Superprime (781 - 850): The lowest tier averages: 4.41% on new cars and 6.29% on used. Automakers also run special financing offers on some new models; the CFPB notes these may not be available to everyone, so read the terms.
Prime (661 - 780): Averages of 6.15% new and 8.81% used, 1.74 and 2.52 points above superprime.
Near-prime (601 - 660): Averages rise to 9.71% new and 13.93% used. The CFPB notes that a larger down payment may also decrease your interest rate, and a credit-union quote gives you a rate to compare.
Subprime (501 - 600): Averages of 13.52% new and 19.10% used. If you can wait to buy, reaching near-prime would cut the new-car average by 3.81 points, about $3,448 in interest on a $30,000, 60-month loan. Our subprime auto loan guide covers the payment traps and lender red flags at this tier.
Deep subprime (300 - 500): The highest tier averages: 16.11% new and 21.62% used. A larger down payment or a less expensive vehicle reduces how much you borrow at that rate.
Auto Loan Rates for a 620, 650, 660, 700, 750, or 800 Credit Score
Experian reports its averages by credit band, not by exact score, so a 655 and a 660 share the same benchmark; each lender sets its own pricing. Find your band below for the current average new- and used-car APR and a worked sample payment. Every average comes from Experian's Q2 2026 State of the Automotive Finance Market, and every sample payment is a $30,000 loan over 60 months computed with the standard amortization formula.
| Credit Band | Avg New APR | New Payment / Interest | Avg Used APR | Used Payment / Interest |
|---|---|---|---|---|
| Superprime (781-850) | 4.41% | $558 / $3,484 | 6.29% | $584 / $5,042 |
| Prime (661-780) | 6.15% | $582 / $4,925 | 8.81% | $620 / $7,199 |
| Near-prime (601-660) | 9.71% | $633 / $7,988 | 13.93% | $697 / $11,818 |
| Subprime (501-600) | 13.52% | $691 / $11,436 | 19.10% | $780 / $16,792 |
| Deep subprime (300-500) | 16.11% | $731 / $13,878 | 21.62% | $822 / $19,326 |
Superprime: 781-850 Credit Score
Superprime is the tier with the lowest averages: 4.41% APR on new cars and 6.29% on used in Q2 2026. On a $30,000, 60-month new-car loan, that is about $558 per month with $3,484 in total interest. Automakers also run special financing offers on some new models; compare any such offer's APR and terms with the average, since the CFPB notes these offers may not be available to everyone.
800 credit score: An 800 score sits comfortably inside the superprime band, where the Q2 2026 new-car average was 4.41% APR — around $558 per month on a $30,000, 60-month loan. With an 800 score, the useful work is making lenders compete: get at least three quotes and ask each to beat the best one.
Prime: 661-780 Credit Score
Rates remain competitive at prime: 6.15% APR average on new cars and 8.81% on used in Q2 2026. A $30,000, 60-month new-car loan at the prime average runs about $582 per month with $4,925 in total interest — only about $24 per month more than a superprime borrower pays.
750 credit score: A 750 score is in the upper half of the prime band, where the Q2 2026 new-car average was 6.15% APR, about $582 per month on $30,000 over 60 months. Experian publishes averages by tier, not by individual score, so a score near the top of the band may be quoted below that average. You are 31 points from superprime (781), where the new-car average is 4.41%; if you are close to financing anyway, check whether paying down card balances first moves you across that line.
700 credit score: A 700 score lands mid-prime. Plan on quotes near the 6.15% new-car average (about $582 per month on $30,000 over 60 months) and around 8.81% on used cars (about $620 per month). In NCUA's latest comparison (December 2025), credit unions averaged about 2 percentage points below banks on new-car loans, so get a credit-union pre-approval before you visit the lot.
Near-Prime: 601-660 Credit Score
The new-car average rises 3.56 points from prime here. Near-prime borrowers averaged 9.71% APR on new cars and 13.93% on used in Q2 2026. A $30,000, 60-month new-car loan at the near-prime average costs about $633 per month with $7,988 in total interest — roughly $3,060 more interest than a prime borrower pays on the identical car.
660 credit score: At 660 you are one point below the prime cutoff (661) on Experian's tiers, so your benchmark is the near-prime average — 9.71% APR on a new car ($633 per month). The prime average is 6.15%, and the gap between the two is about $51 per month and $3,060 in interest on a $30,000, 60-month loan. If paying down a credit card balance before you apply lifts you past 661, that is the gap between the two benchmarks.
650 credit score: A 650 score is in the near-prime band, where the Q2 2026 averages were 9.71% APR on a new car (about $633 per month on $30,000 over 60 months) and 13.93% on used. Experian publishes averages by tier, not by individual score, so treat those figures as benchmarks to compare quotes against. Get a credit-union quote alongside a bank and an online lender, and consider a co-signer or a 20%+ down payment; the CFPB notes that a larger down payment may also decrease your interest rate.
620 credit score: A 620 score is in the lower part of the near-prime band, where the Q2 2026 averages were 9.71% APR on a new car and 13.93% on used. Experian publishes averages by tier, not by individual score, so a score near the bottom of the band may be quoted above that average. For illustration, at 11% APR (an assumed rate, not an average), $30,000 over 60 months costs about $652 per month. Compare at least three offers.
Subprime: 501-600 Credit Score
Subprime borrowers averaged 13.52% APR on new cars and 19.10% on used in Q2 2026. A $30,000, 60-month new-car loan at the subprime average runs about $691 per month with $11,436 in total interest — more than a third of the vehicle's price in interest alone. If your timeline allows, credit repair (on-time payments, lower card balances, disputing report errors) that moves you up to near-prime would cut that interest to about $7,988 at the near-prime average, a $3,448 difference. The CFPB notes that a larger down payment may also decrease your interest rate.
Deep Subprime: 300-500 Credit Score
Deep subprime borrowers face the highest market rates: 16.11% APR average on new cars and 21.62% on used in Q2 2026. On $30,000 over 60 months, the new-car average means about $731 per month and $13,878 in total interest. At these prices, a cheaper vehicle and a larger down payment reduce how much you borrow at that rate, and you can plan to refinance once your score improves: the new-car average is 13.52% one tier up (subprime) and 9.71% two tiers up (near-prime), against 16.11% here.
Run Your Own Score-Band Scenario in the Auto Loan Calculator →
How These Payments Were Calculated
Sample payments use the standard amortization formula M = P·r(1+r)n / ((1+r)n − 1), where P = $30,000, n = 60 months, and r = APR ÷ 1,200. APR averages are from Experian's Q2 2026 State of the Automotive Finance Market. Your quoted rate will vary with lender, term, down payment, and vehicle age.
How Credit Score Impacts Total Loan Cost
The difference between credit tiers is not just about monthly payments -- it is about the total amount you pay over the life of the loan. Here is what a $30,000, 60-month auto loan looks like across credit tiers.
| Credit Tier | APR | Monthly Payment | Total Interest | Total Cost |
|---|---|---|---|---|
| Superprime | 4.41% | $558 | $3,484 | $33,484 |
| Prime | 6.15% | $582 | $4,925 | $34,925 |
| Near-prime | 9.71% | $633 | $7,988 | $37,988 |
| Subprime | 13.52% | $691 | $11,436 | $41,436 |
| Deep subprime | 16.11% | $731 | $13,878 | $43,878 |
The True Cost of Poor Credit
A deep subprime borrower pays $173 more per month and $10,394 more in total interest compared to a superprime borrower on the exact same $30,000 loan, at the Q2 2026 tier averages.
These figures show what improving your credit score before taking out an auto loan can be worth. Even moving up one tier -- say from subprime to near-prime -- could save you $3,448 in interest over the life of the loan.
Every payment above uses the standard amortization formula documented on our loan calculator methodology page -- our auto loan calculator has no separate methodology page of its own.
New Car vs. Used Car Rate Differences
In Experian's Q2 2026 averages, used-car rates are higher than new-car rates in all five credit tiers. Experian attributes this mainly to used cars being more likely to break down, which affects the lender's investment. For a detailed breakdown, see our new vs. used car buying guide, and for used-car pricing on its own, our used car loan rates guide.
| Credit Tier | New Car APR | New Car Payment | Used Car APR | Used Car Payment | Monthly Difference |
|---|---|---|---|---|---|
| Superprime | 4.41% | $558 | 6.29% | $584 | +$26 |
| Prime | 6.15% | $582 | 8.81% | $620 | +$38 |
| Near-prime | 9.71% | $633 | 13.93% | $697 | +$64 |
| Subprime | 13.52% | $691 | 19.10% | $780 | +$89 |
| Deep subprime | 16.11% | $731 | 21.62% | $822 | +$91 |
Why the Rate Gap Exists
- Vehicle condition: Experian says new cars typically qualify for lower rates because they are less likely to break down, and that rates can rise as a car gets older and racks up more miles
- Manufacturer incentives: Automakers run special financing offers on some new models, which the CFPB notes may not be available to everyone; a standard used car does not get them. Compare the total cost difference with our lease vs. buy analysis
- Vehicle age and mileage limits: Experian notes that many lenders may not finance a vehicle older than 10 years or with more than 100,000 miles
Certified Pre-Owned Advantage
Certified pre-owned (CPO) vehicles can qualify for manufacturer promotional financing that a standard used car does not get. The offer varies by brand, model and month, and we found no public survey of average CPO rates, so compare the current CPO offer with a standard used-car quote.
How to Get the Best Auto Loan Rate
Regardless of your current credit tier, you can take concrete steps to lower your auto loan rate. Here are six of them.
1. Improve Your Credit Score Before You Buy
If your purchase is not urgent, moving up even one tier is worth $1,441 to $3,448 in interest on a $30,000, 60-month new-car loan at the Q2 2026 tier averages.
- Pay down credit card balances to lower your credit utilization -- amounts owed make up 30% of a FICO Score, per myFICO
- Make every payment on time -- payment history is, in myFICO's words, "the most important factor in a FICO Score"
- Dispute errors with the credit bureaus after checking your free reports at AnnualCreditReport.com
- Avoid opening new accounts right before applying for an auto loan
- Become an authorized user on a family member's long-standing, low-utilization card
2. Shop Multiple Lenders
Auto loan inquiries made close together count as a single hard inquiry on your credit report, so there is no penalty for comparing offers. Newer FICO versions pool them across a 45-day window (opens in new tab); older FICO versions and VantageScore use 14 days, so finishing inside 14 days is protected under every model.
Get quotes from at least three sources:
- Your primary bank or credit union
- An online auto lender (such as Capital One Auto, LightStream, or myAutoloan)
- The dealer's finance department
3. Consider a Credit Union
Credit unions are member-owned nonprofits that typically offer lower auto loan rates than banks. In the National Credit Union Administration's (NCUA) latest comparison, for December 26, 2025, credit unions averaged 5.44% on a 60-month new-car loan against 7.41% at banks -- about 2 percentage points lower.
| Lender Type | Average New Car Rate (60-month) | Average Used Car Rate (48-month) |
|---|---|---|
| Credit Union | 5.44% | 5.53% |
| Bank | 7.41% | 7.73% |
| Online Lender | No public average found | No public average found |
| Dealer Financing | No public average found | No public average found |
Source: NCUA, Credit Union and Bank Rates 2025 Q4 (opens in new tab), national averages for December 26, 2025 -- the most recent quarter NCUA had published when we checked on September 29, 2026. NCUA does not break these averages out by credit score. We found no public survey that publishes average rates for online lenders or dealer-arranged financing; compare the APR in each written offer.
4. Make a Larger Down Payment
A down payment of 20% or more keeps the loan at or below 80% of the price. The CFPB notes that increasing your down payment may also decrease your interest rate, and Experian that higher down payments usually translate to lower rates. On a $30,000 vehicle, a $6,000 down payment means borrowing $24,000, which lowers the risk of owing more than the car is worth.
5. Choose a Shorter Loan Term
A shorter loan costs less in total because you pay interest for fewer months. Published averages show little rate difference between terms: the Federal Reserve's G.19 release (opens in new tab) put the commercial-bank rate at 7.14% for a 60-month new-car loan and 6.97% for a 72-month loan in Q2 2026, and it does not publish a 36-month rate. While the monthly payment is higher on a shorter loan, the total interest you pay is lower.
6. Get Pre-Approved Before Visiting the Dealer
Pre-approval gives you a firm rate offer in hand, which you can use as leverage at the dealership. Dealers may beat your pre-approved rate to win your financing business, or you can simply use your pre-approved offer if the dealer cannot match it.
Dealer Financing vs. Bank vs. Credit Union vs. Online Lenders
Where you get your auto loan matters as much as your credit score. Each financing channel has distinct advantages and drawbacks.
| Factor | Dealer | Bank | Credit Union | Online Lender |
|---|---|---|---|---|
| Published average rate | No public average found | 7.41% (60-month new, NCUA 2025 Q4) | 5.44% (60-month new, NCUA 2025 Q4) | No public average found |
| How you apply | At the dealership, which arranges the loan | Directly with the bank | Directly, as a member | Directly, online |
| Rate to watch | May include a dealer markup over the lender's rate (CFPB) | Compare with the NCUA bank average | Compare with the NCUA credit-union average | Compare the APR in each written offer |
| Special programs | Automaker special financing on some models | Ask about existing-customer pricing | Membership required | Ask whether pre-qualification uses a soft inquiry |
Watch for Dealer Rate Markup
The CFPB describes "dealer markup" as the rate a dealer charges above the rate the lender approved, with the lender sharing part of the extra interest with the dealer. For illustration only: if a lender approved you at 5% and the dealer offered you 7%, the 2 percentage points between them would be markup, part of which the lender shares with the dealer. A pre-approved offer gives you a rate to compare against. Always ask what the "buy rate" is versus the offered rate.
The Pre-Approval Process Explained
Pre-approval is a commitment from a lender to offer you financing at a specific rate, subject to final verification. Here is how to get pre-approved efficiently.
Step 1: Check Your Credit Report
Visit AnnualCreditReport.com(opens in new tab) to review your free credit reports from all three bureaus. Dispute any errors before applying.
Step 2: Gather Your Information
Expect to be asked for:
- Social Security number
- Proof of income (pay stubs, W-2s, or tax returns)
- Current address and employment information
- Desired loan amount and term
Step 3: Apply with Multiple Lenders
Submit applications to at least 3 lenders inside one rate-shopping window. Newer FICO versions treat multiple auto loan inquiries made within 45 days as a single hard pull; older FICO versions and VantageScore use 14 days, so 14 days is the target that is safe under every model.
Step 4: Compare Offers
Review each offer's APR, loan term, monthly payment, total interest, and any fees. The CFPB describes the APR as your interest rate plus fees, so compare APRs at the same term, and ask about any charge the APR does not include.
Step 5: Bring Your Best Offer to the Dealer
Present your pre-approval letter when negotiating. Focus on the out-the-door vehicle price first, then discuss financing. The dealer may offer to beat your rate -- compare the full terms before accepting.
When to Refinance Your Auto Loan
If you are currently paying a high rate, refinancing your auto loan can significantly reduce your monthly payment and total interest. Consider refinancing when:
- Your credit score has moved up a tier since your original loan
- The average for your tier now sits well below your rate, by enough to outweigh any refinancing fees
- You accepted dealer financing at a rate higher than what banks or credit unions offer
- You are in the first half of your loan term (when more of each payment goes to interest)
Refinancing Example
An illustration on assumed rates (12.0% and 7.0%), not quotes or averages:
| Scenario | Original Loan | Refinanced Loan |
|---|---|---|
| Remaining balance | $22,000 | $22,000 |
| Interest rate | 12.0% | 7.0% |
| Remaining term | 48 months | 48 months |
| Monthly payment | $579 | $527 |
| Remaining interest | $5,809 | $3,287 |
| Total savings | -- | $2,521 |
Run this example in the Auto Loan Calculator (the original loan at 12.0%)
Run this example in the Auto Loan Calculator (the refinanced loan at 7.0%)
Timing Matters
Refinancing works best early in your loan when more of your payment goes toward interest. If you are more than halfway through your term, the potential savings diminish because you have already paid most of the interest.
2026 Auto Loan Rate Trends and Fed Impact
Auto loan rates do not move in isolation. They are influenced by Federal Reserve policy, the broader economy, and lender competition.
How the Federal Funds Rate Affects Auto Loans
Experian explains the link this way: the federal funds rate directly influences the prime rate lenders use to set consumer loan rates, so "when the federal funds rate is up, auto loan rates typically follow suit," and when the Fed cuts, that move "trickles down to lenders, which often lower their interest rates as well." The pass-through is not immediate or exact, and each lender sets its own rates.
2026 Rate Outlook
After rate cuts in late 2024 and three more in late 2025, the Federal Reserve raised the federal funds target range by a quarter point to 3.75-4.00% at its September 16, 2026 meeting(opens in new tab), stating that inflation "remains elevated." The statement gave no explicit guidance on future moves. For auto borrowers heading into late 2026:
- Lenders' own borrowing costs rose with the September hike, so a broad decline in auto loan rates is less likely than it looked earlier in the year
- Your credit tier still matters more than the Fed's quarter point: the Q2 2026 averages span 11.70 points on new cars from superprime to deep subprime
Rate Forecasts Are Not Guarantees
Interest rate predictions are based on current economic conditions and Federal Reserve guidance. Unexpected economic events, inflation changes, or policy shifts can alter the trajectory. Focus on the rate you can secure today rather than waiting for potentially lower rates that may not materialize.
Frequently Asked Questions
Per Experian's Q2 2026 State of the Automotive Finance Market, the average new-car APR is 4.41% for superprime borrowers (781+) and 16.11% for deep subprime (300-500). Across all credit profiles, the same report puts the average new-car APR at 6.35%, with used-car loans averaging 11.19% APR.
A 720 credit score sits in the prime tier (661-780 on VantageScore 4.0, the model Experian uses for these tiers), which carries an average new-car APR of 6.15% per Experian Q2 2026 data, and 8.81% on used cars. Experian publishes averages by tier, not by individual score, so 6.15% is a benchmark to compare a 720-score quote against, not a prediction of it. In NCUA's latest comparison (December 2025), credit unions averaged about 2 percentage points below banks on new-car loans.
A 620 credit score falls in the near-prime band (601-660), which averaged 9.71% APR on new cars and 13.93% on used in Experian's Q2 2026 data. At the band average, a $30,000, 60-month loan costs about $633 per month. Experian publishes averages by tier, not by individual score, so a score in the lower half of the band may be quoted above that average. Compare at least three lenders. See the full 620-score breakdown above.
A 650 credit score is near-prime (601-660). Experian's Q2 2026 data shows that band averaging 9.71% APR on new cars (about $633 per month on a $30,000, 60-month loan) and 13.93% on used. Experian publishes averages by tier, not by individual score, so treat 9.71% as a benchmark to compare quotes against. A co-signer or a 20%+ down payment can improve the quote you receive.
At 660 you are one point below the prime cutoff (661) on Experian's tiers, so you fall in near-prime, where the Q2 2026 new-car average was 9.71%, or about $633 per month on a $30,000, 60-month loan. The prime average (6.15%) would cost roughly $51 per month and $3,060 in total interest less on the same loan, so a small score gain before you apply is worth checking for.
A 700 credit score lands mid-prime (661-780). Experian's Q2 2026 averages for that band are 6.15% APR on new cars — about $582 per month on a $30,000, 60-month loan — and 8.81% on used cars (about $620 per month). In NCUA's latest comparison (December 2025), credit unions averaged about 2 percentage points below banks on new-car loans, so a credit-union quote is worth getting.
A 750 credit score sits in the upper part of the prime band (661-780), where Experian's Q2 2026 new-car average was 6.15% — about $582 per month on a $30,000, 60-month loan. Experian publishes averages by tier, not by individual score, so a score near the top of the band may be quoted below that average. You are 31 points from superprime (781), where average rates drop to 4.41%, so a small score improvement before financing can reach the cheapest tier.
An 800 credit score is solidly superprime (781-850), the tier with the lowest averages: a 4.41% average new-car APR and 6.29% used in Experian's Q2 2026 data. That is about $558 per month on a $30,000, 60-month new-car loan. An average is not a quote, so compare offers against it. Automakers also run special financing offers on some new models, which the CFPB notes may not be available to everyone.
A good auto loan rate in 2026 is one at or below the average for your credit tier. For a new car, Experian's Q2 2026 averages were 4.41% at superprime (781+) and 6.15% at prime (661-780). For a used car, Experian's Q2 2026 averages were 6.29% at superprime (781+) and 8.81% at prime (661-780). Both tiers start at a score of 661 on VantageScore 4.0.
Credit score has a major impact. The gap between superprime (4.41% avg APR) and deep subprime (16.11% avg APR) on a $30,000 60-month loan is roughly $173 per month and $10,394 in total interest, per Experian Q2 2026 averages. In those averages, each step down the five tiers added 1.74 to 3.81 percentage points to the new-car rate and 2.52 to 5.17 points to the used-car rate.
Yes. Used-car loan rates run roughly 1.9 to 5.6 percentage points higher than new-car rates depending on credit tier, with the widest gaps in the subprime tiers (Experian Q2 2026). Experian's Q2 2026 report shows the average new-car APR at 6.35% versus 11.19% for used cars. Experian attributes the gap mainly to used cars being more likely to break down, which affects the lender's investment.
Yes, but expect significantly higher rates. A 500 score is deep subprime (300-500), where Experian's Q2 2026 averages were 16.11% APR on new cars and 21.62% on used. Consider building your credit before borrowing, making a larger down payment, or finding a co-signer to reduce your rate.
Absolutely. Pre-approval from a bank, credit union, or online lender gives you a firm rate to compare against dealer financing. It strengthens your negotiating position because you can focus on the vehicle price rather than the monthly payment. Multiple applications count as a single credit inquiry when they fall inside one rate-shopping window -- 45 days on newer FICO versions, 14 days on older FICO versions and VantageScore.
Credit unions typically offer lower auto loan rates than banks. In the National Credit Union Administration's latest comparison, for December 26, 2025, credit unions averaged 5.44% on a 60-month new-car loan against 7.41% at banks, about 2 percentage points lower, and 5.53% against 7.73% on a 48-month used-car loan. NCUA does not publish averages for dealer or online-lender financing, or rates by credit score. As member-owned cooperatives, credit unions return earnings to members, which is one reason they can price below banks.
Consider refinancing your auto loan when your credit score has moved up a tier since your original loan, when the average for your tier now sits well below your rate, or when you accepted dealer financing at a higher rate. Compare the interest you would save with any refinancing fees. Refinancing saves the most in the first half of your loan term, when more of each payment goes to interest.
Auto loan rates in 2026 are influenced by Federal Reserve policy. After three cuts in late 2025 brought the federal funds target range to 3.50-3.75%, the Fed raised it by a quarter point to 3.75-4.00% on September 16, 2026, saying inflation remains elevated, and gave no explicit guidance on further moves. Experian notes that auto loan rates typically follow the federal funds rate, so borrowers generally should not count on rates falling in late 2026. Rates also depend on lender policies and individual credit profiles.
Your Next Steps
- Check your credit score for free through your bank or at AnnualCreditReport.com(opens in new tab)
- Know your credit tier and its average rate from the table above, as a benchmark for the quotes you get
- Get pre-approved from at least 3 lenders (bank, credit union, and online lender) within 45 days -- 14 days to be safe under every scoring model
- Calculate your budget using our auto loan calculator to see exact monthly payments at different rates
- Negotiate the vehicle price first at the dealer, then compare financing offers
- Review your loan when your score moves up a tier to see if refinancing makes sense
Ready to See Your Payment?
Enter your loan amount, rate, and term into our auto loan calculator to see your exact monthly payment, total interest, and compare different scenarios side by side.
Sources
- Experian - State of the Automotive Finance Market, Q2 2026: average APR by credit tier (published September 10, 2026)(opens in new tab)
- Federal Reserve - Consumer Credit (G.19), September 8, 2026 release: commercial-bank new-car rates, Q2 2026(opens in new tab)
- Federal Reserve - FOMC Statement, September 16, 2026 (target range raised to 3.75-4.00%)(opens in new tab)
- Consumer Financial Protection Bureau - Auto Loans(opens in new tab)
- National Credit Union Administration - Credit Union and Bank Rates 2025 Q4 (December 26, 2025)(opens in new tab)
- myFICO - Loan Savings Calculator(opens in new tab)
- myFICO - Rate Shopping: the 45-day window on newer FICO versions, 14 days on older ones(opens in new tab)
- myFICO - What's in my FICO Scores? (payment history is the most important factor; amounts owed 30%)(opens in new tab)
- VantageScore - FAQs: VantageScore 4.0 counts inquiries within a 14-day window as a single inquiry (read September 29, 2026)(opens in new tab)
- CFPB - What things can I negotiate when shopping for a car or auto loan? (down payment, manufacturer special financing; last reviewed August 28, 2023)(opens in new tab)
- CFPB - What should I know before I finalize a car or auto loan? (APR is your interest rate plus fees; last reviewed November 8, 2022)(opens in new tab)
- CFPB - Fact sheet on dealer markup in indirect auto lending (March 2013)(opens in new tab)
- NCUA (MyCreditUnion.gov) - What is a Credit Union? (not-for-profit, member-owned; last modified February 4, 2025)(opens in new tab)
- FTC - Buying a New Car(opens in new tab)
Important Disclaimer
Disclaimer: This content is for educational and informational purposes only and does not constitute financial, tax, or legal advice. Individual circumstances vary, and you should consult with a qualified professional before making financial decisions. Interest rates shown are published averages from the sources named, or illustrative rates where labelled, and may not reflect rates offered by specific lenders. Actual rates depend on credit score, loan amount, term, vehicle type, down payment, and lender policies. While we strive for accuracy, rates and market conditions change frequently. Rate data: Experian Q2 2026 State of the Automotive Finance Market; Federal Reserve G.19 Consumer Credit. Rate data current as of September 2026. Experian's Q2 2026 figures (published September 10, 2026) were the most recent edition when this page was verified on September 28, 2026. Experian releases roughly two months after quarter-end, so a newer edition may exist by the time you read this — check the source before relying on any specific tier average.
Content reviewed by Mark at Markco Labs. Learn more about our accuracy standards.