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Average Car Loan Interest Rates by Credit Score

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Average Car Loan Interest Rates by Credit Score
The median auto loan price is 5.16% for new cars and 9.34% for used cars, but shop around to get the best deal.
Shannon Bradley Shannon Bradley Lead Writer | Personal finance, car purchasing, loans Shannon Bradley covers auto loans for NerdWallet. While in college, pursuing an education in journalism, Shannon completed an internship that led not to the newsroom, but rather to a bank's marketing department. She spent the next 30-plus years as a journalist and content manager in the field of financial services, creating educational content that covered a broad range of personal and business financial topics. After being a NerdWallet reader for several years, Shannon welcomed the opportunity to join the NerdWallet team as a writer and help more people with financial decisions. Shannon is located at Newburgh, Indiana.





Dec 7, 2022


Edited by Des Toups Lead Assigning Editor | Student loans and repaying college debt, paying for college Des Toups leads the student loans and auto loans teams at NerdWallet and, prior to that, he was the head of NerdWallet's private loans and consumer finance teams. He has also led editorial groups on CarInsurance.com, Insurance.com and MSN.com and worked as reporter and editor at The Seattle Times, Anchorage Daily News, Albuquerque Journal, Colorado Springs Gazette-Telegraph and Biloxi Sun Herald.







Many or all of the items featured on this page are from our partners who pay us. This influences which products we write about and where and how the product is featured on the page. But, it doesn't affect our assessments. Our views are our own. Here is a list of and .



If you're in the market for a new or new-to-you vehicle, the average car loan interest rates by credit score can give you an idea of the rates to expect from a lender.
The auto loan rates are provided in the form of an annual percentage rate, or APR, and is based on a number of variables including your debt and income, as well as your score on credit.
However, you're likely to be the biggest factor in determining which rate you'll get. The lower your auto loan interest rate is likely to be because lenders view you as less likely to default in the loan.
Average car loan interest rates
Credit score



Average APR, 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 automobile loan cost is 5.16 percent for brand new cars and 9.34 percent for used vehicles, according to Experian's State of the Automotive Finance Market report for the third quarter of 2022.
If you have a credit score of 780, you'll stand a good chance to secure a rate lower than 4 percent for brand new cars. In the event that your credit rating is lower than 501, you could be expecting a rate higher than 10% on new cars.
Find preapproved deals
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 percent

Est. APR 3.69-21.00%

Loan amount $5,000-$100,000

Amount of loan $7,500-No maximum.

Loan amount $8,000-$100,000






>> MORE:
How do you make use of the average auto loan interest rates
If you know the average car loan interest rate that you could be eligible for, you are able to make use of our calculator to estimate the monthly cost for different loan conditions.
You won't know the actual rate until you apply for an auto loan and receive lender offers however, you'll be able to get an understanding of the rate. You'll pay higher interest rates for longer-term loans than those with shorter terms. To ensure you receive the best rate possible compare rates from several lenders and compare.
If you've already borrowed money for on a vehicle and your rate is higher than the average rate listed on your credit report, then you might be able refinance to lower rates and with a lower monthly amount of. You can apply to a variety of lenders to determine the rates they offer.


The author's bio: Shannon Bradley covers auto loans for NerdWallet. She worked for more than 30 years working in banking as a journalist for financial educational content.







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