Average car loan interest rates by credit score

Elevated interest rates and vehicle prices are making car loans increasingly expensive in 2026. The average monthly auto payment raced past $800 in the first quarter of the year, according to data from JD Power, and nearly one in five borrowers is paying at least $1,000 a month. 

When applying for a car loan, your credit score is one of the most influential factors in determining approval and interest rate. The higher your score, typically, the better APR — and vice versa.

Other factors also play a role, including the size of your down payment, your debt-to-income ratio and the vehicle's age and mileage. Still, understanding the auto loan interest rate that your score is likely to qualify for will help you budget for a new car and compare lenders more effectively.

Find competitive auto loan rates

According to credit reporting agency Experian, the average auto loan interest rate in the fourth quarter of 2025 was 6.37% for new cars and 11.26% for used cars. Here's how average rates broke down by credit score, based on VantageScore® 4.0.

Your credit score is a major factor in determining your rate but it's not the only one. Here are other criteria that can influence your rate:

• Down payment size: The larger your down payment, the more likely you can score a lower interest rate. That's because you'd be taking on less of a loan (lowering the loan-to-value ratio of your purchase).
• Loan term: Shorter loan terms may help you land lower interest rates compared to longer loan terms. Many lenders offer terms that start at just 24 or 36 months.
• Age and type of vehicle: An older used car often means a higher interest rate because lenders view it as a riskier investment. There's a higher depreciation rate and a greater risk of mechanical problems.
• Lender: Between dealer financing, banks, credit unions and online lenders, dealer financing is most likely to land you a higher interest rate. Because of lower overhead and intense competition, online lenders often have the most competitive rates.

Dealer financing keeps the loan process simple, but that convenience and the lack of competition can lead to higher interest rates.

There are also options if you'd prefer to stick with a lender that you're familiar with or may already have a banking relationship with. Capital One Auto Finance offers competitive rates and existing Capital One customers may be eligible for a rate discount and other benefits. Loan amounts starting at $4,000 and terms range from 24 to 84 months.

MyAutoloan connects you with up to four pre-approved car loan offers in just a few minutes. You can get approved with a FICO Score of 600 or apply with a co-signer.

If you're looking for a used car, CarMax offers competitive financing and a wide variety of vehicles. We like that there's no minimum credit score requirement and that CarMax's "three-day payoff program" lets you switch lenders within three business days if you find a better rate or term.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every car loan article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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