If you want to buy a new car, used vehicle, truck, or motorcycle, the auto loan rates you get can save or cost you thousands. In 2026, the average rate for a 60-month new car loan is about 7.01 percent APR, per Bankrate. Used car loan rates are higher at about 11.40 percent. With new car prices above $50,000 across America, finding the best auto loan rates is key before you buy.
This guide covers auto loan rates by credit score and term, where to find the best rates, how to apply online, and tips to lock in a low APR. We also cover motorcycle loan rates, car buying service options, and how to save at the dealership.
Current Auto Loan Rates
Auto loan rates have been going down since late 2023. The Fed funds rate sits at 3.50 to 3.75 percent, and Bankrate projects new car loan rates could fall to about 6.40 percent by the end of 2026. Used car rates may dip to 10.50 percent if the Fed cuts rates more this year.
Your rate will vary based on your credit score, credit history, loan amount, loan term, the age and miles on the vehicle, and the lender you pick. Borrowers with excellent credit can find auto loan rates as low as 4.50 to 5.25 percent on new vehicles, while applicants with poor or fair credit may face rates above 15 percent.
Average New Car Auto Loan Rates by Credit Score
Your credit score is the most important factor lenders check when they determine the interest rate to offer. According to Experian’s Q3 2025 data, here is what car buyers across America can expect when they apply for a new car loan:
Super-prime credit (781–850): Members of this top tier qualify for the lowest auto loan rates. The average new car rate was 4.88 percent APR. These buyers receive the best financing incentives from dealerships.
Prime credit (661–780): This group holds the largest share of auto loan originations. Average new car rates fall between 5.50 and 7.50 percent APR depending on loan term and other factors.
Near-prime credit (601–660): Rates climb higher here, typically between 8 and 12 percent APR. Comparing info from multiple lenders is required to find a good rate at this level.
Subprime and deep subprime (500 and below): Borrowers with poor credit face rates from 14 to 21 percent. Some credit unions and online lenders still provide service to applicants who need financing with fair or bad credit.
Average Used Car Loan Rates by Credit Score
Used cars cost more to finance because pre-owned vehicles carry more risk for the lender. U.S. News reports the average used car rate was 11.40 percent in Q3 2025. Super-prime borrowers paid about 6.82 percent, while deep subprime borrowers faced rates above 21 percent. The gap between good and poor credit is even wider for used cars than for new ones.
How Loan Term Affects Auto Loan Rates
The term you pick affects both your rate and total cost. Short loan terms have lower rates. Long terms have a lower monthly payment but cost more over the years.
36 Months
About 6.20 percent APR. You pay the least total interest but have the highest monthly payment.
48 Months
About 6.50 percent APR. A good balance of monthly payment and total interest for most buyers.
60 Months
About 7.01 percent APR. This is the most popular term. The average monthly payment on a new car loan at 60 months is $745.
72 Months
About 7.40 percent APR. The monthly payment drops, but total interest goes up. You may owe more than the vehicle is worth for years on this term.
84 Months
Rates of 7.70 percent or more may apply. Some credit unions offer this term, but limits on model year and mileage may apply. The total interest is much higher.
Where to Find the Best Rates
Where you apply has a big effect on the APR you get. Here are the main options.
Credit Unions
Credit unions consistently offer some of the lowest auto loan rates. Because they operate as not-for-profit institutions, they pass savings to their members through lower interest rates and fewer fees. Some credit unions advertise rates as low as 1.99 to 3.99 percent APR on new vehicles. Membership is open to more people than you think — membership is free or low-cost at many credit unions, and members get the best rates. Many credit unions let members apply online, by phone, text, or through a mobile app. Check their website for info on how to join. The experience is fast, and members say the service is great. Some will send you text or email updates as your application moves along.
Car Buying Service Options
Several credit unions and lenders offer a car buying service that helps members find vehicles at negotiated prices. PenFed’s car buying service, for example, provides cash-back incentives and special loan rate discounts for members. This type of service streamlines the experience of shopping for your next car and can help you save money at the dealer.
Banks and Online Lenders
Banks like Bank of America and Capital One offer auto loan financing with good rates. The application starts online and you can get a decision in minutes. Navy Federal offers a 90-day rate lock on pre-approvals, while Bank of America provides a 30-day lock so you can shop with confidence.
Online lending marketplaces like LendingTree let you compare multiple loan offers at once. Borrowers who used the LendingTree marketplace saved an average of $2,346 on their car loan by comparing and picking the best offer provided.
Dealership Financing
Dealers work with many lenders and may offer deals like 0 percent APR for 36 months on select new car models. But they can also mark up rates. Apply at a bank or credit union first, then let the dealer try to beat your rate.
Auto Loan Financing for Different Vehicles
Rates can vary by the type of vehicle you want to buy. Here is what to expect when you buy.
New Car Loan Rates
New cars get the lowest interest rate because they come with warranties and hold their value longer. The average new car interest rate was 6.56 percent in Q3 2025. Buyers with top credit may qualify for 0 percent APR on some models.
Used Car Loan Rates
Used cars carry higher rates because older vehicles have more mechanical risk. Lenders also look at model year, mileage, and vehicle condition. Many will not finance used cars older than 10 years or with more than 100,000 miles. Cars that are five years old or less tend to get the best rates. If you are shopping for used cars, certified pre-owned options from a dealership often qualify for lower rates because they meet specific condition requirements.
Motorcycle Loan Rates
Motorcycle loan rates typically run higher than car loan rates — often between 5.90 and 10.40 percent depending on credit score and model year. Credit unions like PenFed and Navy Federal offer motorcycle financing alongside their auto loan products. Restrictions on mileage and model year may apply, so send your questions to the lender or check their website for additional information before you apply.
Truck and SUV Financing
Truck and SUV buyers generally qualify for the same auto loan rates as car buyers. The Chevrolet Silverado 1500 and Ford F-150 were among the most popular models on the LendingTree marketplace in Q3 2025. The same loan terms and rate structures apply — just make sure the loan amount matches the vehicle value so you do not end up upside down.
The Application Process: How to Apply Online
Pre-approval is one of the best steps in the car buying process. It tells you the loan amount, rate, and term a lender will offer before you shop. Here is how the application process works.
Check Your Credit Score
Check your credit score and look for errors. Get your free report from AnnualCreditReport.com. Fixing mistakes can raise your score and help you get better auto loan rates.
Compare Lenders and Apply
Get quotes from three to five lenders — a credit union, a bank, and an online lender at least. Most let you apply online. Have your information ready: name, address, phone, email, income, and loan amount. This makes the application go faster. A smooth application process helps you get your loan amount approved sooner. Many lenders offer pre-qualification with a soft credit check that has no effect on your score.
Lock Your Rate
Review the APR, monthly payment, fees, and term. Many lenders lock your rate for 30 to 90 days so you can shop for the right vehicle.
Shop and Finalize Your Purchase
Shop for new cars and used cars with your pre-approval ready. When you pick a vehicle, the lender will send the funds to the dealer. The whole process can take one to two days.
How Your Credit Score Affects Auto Loan Rates
Your credit score is based on your credit history. It has a direct effect on the rate you get. According to the CFPB, shopping around for auto loan rates is one of the most effective ways to save money on vehicle financing. On a $30,000 loan for 60 months, the gap between a 5.25 percent interest rate and a 15.85 percent interest rate adds up to more than $9,600 in total cost — that is real money.
Tips to Improve Your Credit Score
If your credit needs work before you apply for auto loan financing, there are steps you can take. Pay down existing balances to lower your credit utilization. Make all payments on time — payment history is the most heavily weighted factor. Avoid opening new accounts in the months before your application. Even a small jump in your credit score — say from 650 to 700 — could cut your rate by one to two points. Over five or six years, that adds up to big savings. For more information, see our guide to loans for bad credit.
How to Save Money on Your Auto Loan
Beyond finding the best auto loan rates, these strategies can reduce the total cost of financing your next vehicle.
Make a Larger Down Payment
Putting more cash down reduces the loan amount, which lowers your monthly payment and total interest. A down payment of 10 to 20 percent is a good target. A bigger down payment also means a lower monthly payment amount and less risk of owing more than the value of your car.
Choose a Shorter Loan Term
A 36-month or 48-month loan term means higher monthly payments, but you pay dramatically less total interest compared to 72 or 84 months. Shorter terms also carry lower rates.
Compare Rates From Multiple Lenders
Check auto loan rates at multiple banks, credit unions, and online lenders. Even a quarter-point difference in APR can save hundreds over 60 months. If you apply within a 14 to 45 day window, the credit bureaus treat all inquiries as a single check on your score.
Negotiate at the Dealership
Lock in your financing before you visit the dealer, then negotiate the vehicle price separately from the loan. Avoid unnecessary add-ons and fees that inflate the loan amount without adding value. Always review the loan documents carefully before you sign.
Set Up Automatic Payments
Some lenders offer a rate cut — about 0.25 percent — when you set up autopay from your bank account. This step saves you money over the years and makes sure you never miss a payment. Autopay also helps you build a strong payment history on your credit report.
The Bottom Line on Best Auto Loan Rates
Auto loan rates in 2026 are going down, but the rate you get depends on your credit score, the vehicle, the term, and where you apply. Good credit can get you rates from 4.50 to 5.25 percent on new cars. The key is to check your score, apply to many lenders, compare offers, and negotiate at the dealer.
Whether you plan to buy your next vehicle, consolidating existing debt, or financing a truck or motorcycle, taking the time to shop for the best auto loan rates can save you thousands over the life of your vehicle loan. Apply today to lock in a low rate before you buy. For more on how changing interest rates affect your loans in 2026, visit our learning center.
References
Bankrate – Auto Loan Rates and Financing in 2026
Experian – Average Car Loan Interest Rates by Credit Score
U.S. News – Average Auto Loan Interest Rates
