The gap between the best and worst auto loan rates can cost you thousands of dollars over the life of a single car. In early 2026, a buyer with top-tier credit paid about 4.55% APR on a new car, while a deep subprime buyer paid over 16% for the same loan.
Auto loan rates shift with your credit, the lender you pick, and the wider economy. Knowing the current averages gives you a benchmark, so you can spot a fair offer and walk away from a costly one.
Average auto loan rates in July 2026
Consumer credit company Experian tracks auto loan rates every quarter. In its Q1 2026 State of the Automotive Finance Market report, the overall average was 6.39% APR for new cars and 11.43% APR for used cars.
Rates vary widely by credit tier. The table below shows average APRs by VantageScore credit band as of July 2026.
| Credit tier (VantageScore) | New car APR | Used car APR |
|---|---|---|
| Superprime (781 to 850) | 4.55% | 6.30% |
| Prime (661 to 780) | 6.23% | 8.77% |
| Nonprime (601 to 660) | 9.67% | 14.03% |
| Subprime (501 to 600) | 13.44% | 19.42% |
| Deep subprime (300 to 500) | 16.01% | 21.77% |
Source: Experian, Q1 2026. APRs vary by creditworthiness and change over time. Terms and conditions apply.
Why your credit score matters so much
Your credit score is one of the biggest factors in the rate you get. Lenders use it to judge how likely you are to repay, and a higher score signals lower risk.
A borrower with superprime credit can pay less than a third of the APR charged to a deep subprime borrower. On a $30,000, five-year loan, that difference can add up to more than $10,000 in extra interest. Even a small change in your score can move you into a better tier.
New car rates versus used car rates
Used cars almost always cost more to finance than new ones. Lenders see older vehicles as riskier collateral because they can break down or lose value faster.
Manufacturer incentives also push new car rates down, since automakers sometimes subsidize financing to move inventory. If you are choosing between a new and a used model, factor the higher used car APR into your total cost.
What else affects your auto loan rate
Credit is not the only thing lenders weigh. Several other factors can raise or lower your APR:
- Loan term: Longer terms often carry higher rates and much more total interest.
- Down payment: A larger down payment lowers the lender's risk and can trim your rate.
- Vehicle age and mileage: Older, higher-mileage cars usually mean higher APRs.
- Lender type: Banks, credit unions, and online lenders price loans differently.
- Debt-to-income ratio: Lower existing debt can help you qualify for better terms.
How to shop for the best auto loan rate
The single best move is to compare several offers before you sign. Many lenders let you prequalify with a soft credit check that does not hurt your score.
Marketplaces make this easier. myAutoloan lets you request up to four loan offers at once for new, used, and refinance loans, so you can line up rates side by side in minutes.
myAutoloan
myAutoloan
Find the right auto loan in minutes — even with bad credit. myAutoloan connects you with 20+ lenders to compare personalized offers for new cars, used cars, refinancing, and lease buyouts. Free to use with no obligation.
Standout feature
Compare offers from 20+ lenders. Works with bad credit. BBB A+ rated.
Fees
Free
Pros
Free to use with no obligation. Works with all credit types including bad credit. BBB A+ accredited.
Cons
Some users report receiving calls from multiple dealers after applying.
Should you refinance an existing loan?
If you financed a car when your credit was lower, or when rates were higher, you may be paying more than today's average. Refinancing replaces your current loan with a new one at a better rate, which can lower your monthly payment.
iLending focuses on auto refinancing and works with a network of lenders to find a new rate based on your current credit profile. It can be worth a look if your APR sits above the average for your credit tier.
iLending
iLending
iLending is an auto refinance service that pairs you with a dedicated loan consultant and shops your loan across a network of 60+ lenders. Clients save an average of $148 per month**, and you may be able to skip payments for 45-90 days while your new loan is set up*. iLending works with credit scores as low as 560 and delivers decisions in as little as 24 hours.
Standout feature
Skip payments for 45–90 days when you refinance*
Fees
Varies by lender
Pros
60+ lender network; accepts credit scores as low as 560; decisions in as little as 24 hours; average savings of $148/month**
Cons
Not available in HI, NH, RI; vehicles must be under 150,000 miles; consultation happens by phone
Build your credit before you borrow
If you are not in a rush, raising your credit score before applying can move you into a lower rate tier and save real money. Paying bills on time, lowering card balances, and fixing report errors all help.
Creditship is a tool that can help you track your credit and understand which steps may raise your score fastest. A few months of focused effort can be the difference between a prime and a nonprime rate.
Your next steps
Start by checking your credit score so you know which rate tier you fall into. Then compare that against the averages above to set a target APR.
Prequalify with at least three lenders, read the full terms, and focus on the APR rather than just the monthly payment. Shopping around within a short window usually counts as a single credit inquiry, so your score is barely affected. APRs vary by creditworthiness.
Frequently Asked Questions
What is a good auto loan rate right now?
A good rate depends on your credit tier. As of July 2026, anything at or below the average for your credit band is competitive, such as roughly 6% for prime buyers on a new car. Superprime borrowers can often find rates in the mid-4% range.
Do auto loan rates change often?
Yes. Rates move with the broader economy, lender competition, and Federal Reserve policy, and averages are updated each quarter. The rate you are quoted can also change between prequalification and final approval, so confirm the terms before signing.
Are used car loan rates higher than new car rates?
Usually, yes. Lenders view used vehicles as riskier collateral, and new cars sometimes come with subsidized financing from automakers. As of July 2026, the average used car APR was several points higher than the average new car APR across every credit tier.
Will checking auto loan rates hurt my credit?
Prequalifying with a soft credit check does not affect your score. When you formally apply, lenders run a hard inquiry, but multiple auto loan inquiries within a short window, often 14 to 45 days, are typically counted as one for scoring purposes.
