Average Interest Rates for Car Loans by Credit Score

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Average Car Loan Interest Rates by Credit Score
The typical car loan price is 5.16 percent for brand new cars and 9.34 percent for used vehicles, but you can shop around to find the most competitive rate.
Shannon Bradley Shannon Bradley Lead Writer | Personal finance, car purchases, loans Shannon Bradley covers auto loans for NerdWallet. While attending college to earn the degree of a journalist, Shannon completed an internship which led her not to the newsroom, but rather to a bank's marketing department. She spent the next 30-plus years as a content writer and content manager in the field of financial services, creating educational content that covered a wide spectrum of personal and business financial topics. After having been a NerdWallet user for several years, Shannon welcomed the opportunity to become a writer for NerdWallet and help others with financial decisions. Shannon is located in Newburgh, Indiana.





Dec 7, 2022


Edited by Des Toups Lead Assigning Editor | Student loans and repaying college debt, financing the cost of college Des Toups leads the student loans and auto loans teams at NerdWallet and, prior to that, he headed NerdWallet's personal loans and consumer finance teams. He also managed the editorial team members on CarInsurance.com, Insurance.com and MSN.com as well as worked as an editor and reporter at The Seattle Times, Anchorage Daily News, Albuquerque Journal, Colorado Springs Gazette-Telegraph and Biloxi Sun Herald.







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If you're looking for a new or new-to-you car, the average of loan interest rates by credit score may provide you with an idea of what rate to expect from a lender.
The auto loan rates are given as an annual percentage (also known as APR) and are determined by a variety of factors including your debt and income along with the credit score.
However, you're likely to be the primary factor that determines the rate you'll receive. The lower your car loan interest rate will probably be due to lenders judging that you are less likely to be in default on the loan.
Average car loan interest rates
Credit score



APR average, brand 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 median auto loan cost is 5.16 percent for new vehicles and 9.34% for used cars According to Experian's State of the Automotive Finance Market report for the third quarter of 2022.
With a credit score above 780, you'll have the best shot to receive a rate that is below 4 percent for brand new vehicles. When your score for credit is less than 501, then you can expect a rate above 10% for new cars.
Find preapproved offers
Min. credit score of 660

Min. credit score of 620

Min. credit score 575

Est. APR 6.49-14.24 percent

Est. APR 5.49-17.54%

Est. APR 3.69-21.00%

Amount of loan: $5,000-$100,000.

Loan amount $7,500-No max.

The loan amount is $8,000 to $100,000.






>> MORE:
How to use an average auto loan interest rates
Once you and your average vehicle loan interest rate that you could qualify for, you can make use of our calculator to estimate the monthly payment for various loan conditions.
It's impossible to know the exact rate until you apply for an auto loan and are offered by a lender however, you'll be able to get a general idea of the rate. You can expect to pay more for long-term loans as opposed to short-term ones. To ensure that you get the best deal possible compare rates from several lenders and compare.
If you've already borrowed money for on a vehicle and your rate is greater than the median rate on your credit report, then you may be able to refinance it for a lower rate -- and a lower payment. You can apply to a variety of lenders to see the rates you're offered.


Author bio Shannon Bradley covers auto loans for NerdWallet. She spent nearly 30 years working in banking as a writer of financial education content.







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