Average Auto Loan Rates by Credit Score: What Borrowers Really Pay
Last updated 09/04/2026 by
Andrew Latham
Edited by
Andrew Latham
Summary:
As of the first quarter of 2026, the average new car loan rate is 6.39% and the average used car rate is 11.43%, but your credit score decides where you land. Super-prime borrowers (781+) pay 4.55% on new cars and 6.30% on used. Deep subprime borrowers (below 501) pay 16.01% and 21.77%. On the average $43,925 new car loan, the gap between prime and subprime pricing is about $158 a month and nearly $11,000 in interest. Here’s what each tier pays right now and how to move up one.
Your credit score is the single biggest factor in the auto loan rate you’re offered. Whether you’re financing a new or used car, a few points of APR change your monthly payment by a meaningful amount and change the total you pay by thousands.
Below, we break down the current average auto loan rates by credit tier using Experian’s first-quarter 2026 data, explain how lenders set your APR, and cover what actually moves you into a cheaper tier, even if your credit isn’t perfect today.
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Average Auto Loan Rates by Credit Score (Q1 2026)
These are the averages Experian reported for loans originated in the first quarter of 2026. Your actual quote will vary by lender, term, and vehicle, but this is the market you’re shopping in:
| Credit Score Range | New Car APR | Used Car APR | What This Means for You |
|---|---|---|---|
| 781–850 (Super Prime) | 4.55% | 6.30% | Lowest rates available; you have leverage with every lender |
| 661–780 (Prime) | 6.23% | 8.77% | Competitive rates; shop three lenders and pick the best |
| 601–660 (Near Prime) | 9.67% | 14.03% | Roughly 50% more interest than prime; a 20-point gain pays off fast |
| 501–600 (Subprime) | 13.44% | 19.42% | Expensive; buy less car, put more down, and plan to refinance |
| 300–500 (Deep Subprime) | 16.01% | 21.77% | Very high cost; wait and rebuild if you possibly can |
Source: Experian State of the Automotive Finance Market, Q1 2026. Scores are VantageScore 4.0.
Two things jump out. First, the used car penalty grows as your score drops. Super-prime borrowers pay about 1.75 points more for a used car than a new one. Subprime borrowers pay nearly 6 points more. Second, the market averages (6.39% new, 11.43% used) are pulled down by prime borrowers, who make up most of the volume. Subprime loans were 15.75% of all auto financing in Q1 2026, up from 14.40% a year earlier, so more people are paying the rates in the bottom two rows than last year.
Friendly Tip: Your rate depends on more than credit alone. Loan term, lender type, vehicle age, and down payment all move your APR, sometimes by a full point or more.
What the Rate Gap Costs in Real Dollars
Percentages are abstract. Payments aren’t. Here’s what the tiers above look like on the average new car loan in Q1 2026, which was $43,925 over roughly 69 months:
| Credit Tier | APR | Monthly Payment | Total Interest Paid |
|---|---|---|---|
| Super Prime | 4.55% | $725 | $6,079 |
| Prime | 6.23% | $759 | $8,449 |
| Near Prime | 9.67% | $832 | $13,510 |
| Subprime | 13.44% | $917 | $19,371 |
| Deep Subprime | 16.01% | $978 | $23,550 |
Same car. Same term. The subprime borrower pays $158 more every month than the prime borrower and about $10,900 more in interest over the life of the loan. That’s a quarter of the car’s purchase price, paid for nothing but a three-digit number.
Used cars tell the same story on a smaller balance. On the average $27,070 used car loan over 68 months, prime pays $507 a month and $7,378 in interest. Subprime pays $659 a month and $17,771 in interest. The difference is $152 a month.
Why Credit Score Matters So Much for Auto Loan Rates
Auto lenders use your credit score as a shorthand for how likely you are to pay them back. A higher score gets you:
- A lower interest rate, obviously. But also:
- Access to shorter terms and lower down payment requirements
- Approval from a wider pool of lenders, including credit unions that won’t touch subprime files
- Room to negotiate, because the dealer knows you can walk
If you’re working on your score before you apply, start here: How Car Loans Affect Your Credit Score.
How Auto Loan Rates Differ for New vs. Used Cars
Lenders charge more for used cars because the collateral is riskier. Older vehicles depreciate less predictably, need more repairs, and are worth less if the lender has to repossess and sell them.
| Loan Type | Average APR (Q1 2026) | Why It Differs |
|---|---|---|
| New Auto Loans | 6.39% | Lower risk, factory warranty, predictable resale value |
| Used Auto Loans | 11.43% | Higher risk, older vehicles, weaker collateral |
| Refinance Loans | Borrowers cut 2.2 points on average | Priced on your current credit, not the credit you had at purchase |
That refinance row deserves a closer look. In Q1 2026, borrowers who refinanced trimmed an average of 2.2 percentage points off their rate and lowered their payment by about $81 a month. Credit unions did 63% of that refinance volume. If your score has improved since you bought the car, refinancing your auto loan is the fastest way to get repriced into a better tier.
What Determines Your Auto Loan APR?
Credit score sets the range. These factors decide where in the range you land:
- Credit score: The biggest single input. Each tier boundary is worth roughly 2 to 5 points of APR.
- Loan term: Longer terms carry higher rates, and they’re getting longer. 35.55% of new car loans in Q1 2026 ran past 72 months, up from 30.83% a year earlier. The average new loan is now 69.5 months.
- Vehicle age and mileage: Most lenders add rate for cars older than about 7 years or above 100,000 miles, and many won’t finance beyond 10 years.
- Lender type: Credit unions held 20% of the market in Q1 2026 and consistently price below banks and dealer financing for the same credit profile.
- Down payment: A lower loan-to-value ratio means less risk for the lender, which usually shows up as a lower rate.
- Debt-to-income ratio: Lenders want your total monthly debt payments, including the new car, comfortably under about 43% of gross income.
Good to Know: Manufacturer captive lenders sometimes run 0% or 1.9% promotional APRs on new cars. Those deals are real, but they’re generally reserved for super-prime borrowers, and taking the promo rate often means giving up a cash rebate. Run both numbers before you choose.
How to Get a Better Auto Loan Rate
- Check your score before you shop. If you’re within 20 points of the next tier up, spend 60 days paying down card balances first. Moving from 650 to 665 is worth about 3.4 points of APR on a new car.
- Get preapproved by two or three lenders before you visit a dealer. Do it within a 14-day window so the inquiries count as one.
- Put more down. Getting the loan under 100% of the car’s value opens up better pricing at most lenders.
- Take the shortest term you can afford. A 60-month loan will almost always carry a lower rate than an 84-month loan on the same car.
- Start with a credit union. Even if you don’t end up borrowing there, their quote gives you a floor to negotiate against.
- Plan to refinance. If you have to borrow at a subprime rate today, make 12 months of on-time payments and reapply. The average refinance in Q1 2026 saved $81 a month.
Even one point of APR on a $30,000 loan over 60 months is worth roughly $14 a month and $840 over the term. Two tiers of improvement is worth ten times that.
Your Path to a Lower Auto Loan Rate
Knowing the current averages by tier does two things for you. It tells you whether the quote in front of you is fair, and it tells you exactly how much a better score is worth. If a dealer offers a 640-score borrower 14%, that’s in line with the market. If they offer a 720-score borrower 11%, something’s off, and you should walk.
What’s Next
Now that you know what each credit tier pays, the next step is seeing what lenders will actually offer you.
Smart Move: Use our Best Auto Loans page to compare personalized APRs from multiple lenders without affecting your credit score.
Related Auto Loan Articles
- How Car Loans Work – What lenders look for and how payments are calculated.
- Auto Loan Terms Explained – APR, LTV, prepayment, and the other terms on your contract.
- How Much Car Can I Afford? – Build a car budget that survives a bad month.
- How to Finance a Car – Step-by-step instructions for first-time buyers.
- Refinancing Auto Loans – When it makes sense and how to do it.
- How Car Loans Affect Your Credit Score – How to protect your score through the loan.
Key takeaways
- Average auto loan rates in Q1 2026: 6.39% for new cars and 11.43% for used.
- Super-prime borrowers pay 4.55% (new) and 6.30% (used); deep subprime borrowers pay 16.01% and 21.77%.
- On the average $43,925 new car loan, subprime pricing costs $158 more per month and about $10,900 more in interest than prime.
- 35.55% of new car loans now run longer than 72 months, up from 30.83% a year ago.
- Borrowers who refinanced in Q1 2026 cut 2.2 points off their rate and saved about $81 a month on average.
- Credit unions hold 20% of the auto loan market and handled 63% of refinances.
FAQs
What is a good APR for a car loan?
Anything at or below the average for your credit tier is a fair deal. For prime borrowers in 2026, that means under about 6.2% on a new car and under 8.8% on a used one. If your score is over 780, hold out for something in the 4% to 5% range.
Do used car loans always have higher rates?
Almost always. The gap was about 5 percentage points on average in Q1 2026 (11.43% used versus 6.39% new), and it’s wider for lower credit tiers than for higher ones.
Can you negotiate your auto loan rate?
Yes. The dealer’s finance office typically marks up the rate the lender approves you for. Walk in with a preapproval from a credit union or online lender, and the dealer has to beat it or lose the financing.
Can I get a car loan with a 600 credit score?
Yes, but expect to pay around 13% to 14% on a new car and 19% or more on a used one. If you can wait a few months and push your score past 660, you’ll save roughly 4 to 5 points of APR.
Andrew is the Content Director for SuperMoney, a Certified Financial Planner®, and a Certified Personal Finance Counselor. He loves to geek out on financial data and translate it into actionable insights everyone can understand. His work is often cited by major publications and institutions, such as Forbes, U.S. News, Fox Business, SFGate, Realtor, Deloitte, and Business Insider.
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