Your credit score is the single biggest factor in determining the interest rate you will receive on an auto loan. The difference between excellent and poor credit can mean tens of thousands of dollars in extra interest over the life of your loan. Below, we break down current average APR ranges for new and used car loans across all credit tiers.
The following table shows average interest rate ranges, estimated monthly payments on a $30,000 loan with a 60-month term, and approval likelihood for each credit score tier.
| Credit Tier | New Car APR | Used Car APR | Mo. Payment | Total Interest | Approval % |
|---|---|---|---|---|---|
| Excellent Credit (750+) | 4.2% – 5.7% | 4.9% – 6.8% | $547 | $2,820 | 98% |
| Good Credit (700-749) | 5.6% – 7.2% | 6.7% – 8.9% | $573 | $4,380 | 94% |
| Fair Credit (650-699) | 7.7% – 10.2% | 9.2% – 12.5% | $617 | $7,020 | 84% |
| Average Credit (600-649) | 10.2% – 13.5% | 12.1% – 16% | $665 | $9,900 | 70% |
| Below Average Credit (550-599) | 13.5% – 17% | 16% – 20% | $725 | $13,500 | 50% |
| Poor Credit (300-549) | 17% – 23.5% | 19.5% – 27.5% | $802 | $18,120 | 27% |
* Monthly payment and total interest based on a $30,000 loan with a 60-month (5-year) term at the midpoint APR for new cars.
Auto loan rates in 2026 have edged slightly lower than 2025 as the Federal Reserve has signaled a more accommodating monetary policy. Borrowers across all credit tiers are seeing modest improvements in available rates, though the gap between excellent and poor credit remains wide.
| Credit Tier | 2025 New APR | 2026 New APR | Change |
|---|---|---|---|
| Excellent Credit | 4.5% – 5.9% | 4.2% – 5.7% | -0.3% |
| Good Credit | 5.9% – 7.5% | 5.6% – 7.2% | -0.3% |
| Fair Credit | 8% – 10.5% | 7.7% – 10.2% | -0.3% |
| Average Credit | 10.5% – 13.9% | 10.2% – 13.5% | -0.3% |
| Below Average Credit | 14% – 17.5% | 13.5% – 17% | -0.5% |
| Poor Credit | 17.5% – 24% | 17% – 23.5% | -0.5% |
When you finance a vehicle, the interest rate (expressed as APR, or Annual Percentage Rate) determines how much you pay on top of the car's purchase price. The APR encompasses both the base interest rate and any lender fees, giving you a true picture of the total borrowing cost. Lenders set your rate primarily based on your credit score, but also consider the loan term, down payment amount, whether the car is new or used, and the lender type (bank, credit union, or dealership).
New car loans almost always come with lower interest rates than used car loans. This is because new vehicles are worth more as collateral — if you default, the lender can recover more by repossessing a newer car. Used car rates are typically 1-3 percentage points higher than new car rates for the same credit tier. However, a used car with a lower purchase price can still result in less total interest paid despite the higher APR.
Shorter loan terms (36 or 48 months) generally qualify for lower interest rates than longer terms (72 or 84 months). While a longer term reduces your monthly payment, it dramatically increases the total interest you pay. A 72-month loan at 7% costs significantly more in interest than a 48-month loan at 6%, even though the monthly payment is lower. Financial experts recommend keeping your auto loan term at 60 months or less to balance affordability with total cost.
Select your credit score range below for detailed rate information, payment estimates, and personalized tips to get the best deal on your auto loan.
Want a personalized estimate? Use our free Auto Loan Calculator to see exact monthly payments based on your specific loan amount, term, and interest rate.