What is the average auto loan rate today?

As of March 2026, new car loan rates average 6.75-8.50% and used car rates average 8.50-12.50%, depending on credit score, loan term, and lender.

What credit score do I need for the best auto loan rate?

Credit scores of 750+ typically qualify for the best auto loan rates, often 5.50-6.50% for new cars. Scores below 650 face significantly higher rates, often 12%+.

Auto Loan Rates Today (March 2026): Current Car Loan Interest Rates

Compare current auto loan rates and find the best financing for your new or used car purchase.

Current Auto Loan Rates

Rates as of March 2026. Updated weekly.

New Car Loan Rates

Credit Score	36 Months	48 Months	60 Months	72 Months
750+ (Excellent)	5.50%	5.75%	6.00%	6.50%
700-749 (Good)	6.50%	6.75%	7.00%	7.50%
650-699 (Fair)	8.50%	8.75%	9.25%	10.00%
600-649 (Poor)	11.00%	11.50%	12.00%	12.75%
Below 600	14%+	14%+	15%+	16%+

Used Car Loan Rates

Credit Score	36 Months	48 Months	60 Months	72 Months
750+ (Excellent)	6.25%	6.50%	6.75%	7.25%
700-749 (Good)	7.50%	7.75%	8.00%	8.75%
650-699 (Fair)	10.00%	10.50%	11.00%	12.00%
600-649 (Poor)	13.00%	13.50%	14.00%	15.00%
Below 600	16%+	17%+	18%+	19%+

Auto Loan Rates by Lender Type

Lender Type	New Car	Used Car	Best For
Credit Unions	5.25-7.50%	5.75-8.50%	Best overall rates
Online Lenders	5.75-8.00%	6.50-10.00%	Convenience, preapproval
Banks	6.00-9.00%	7.00-11.00%	Existing relationships
Dealer (Captive)	0-7.00%*	8.00-14.00%	Manufacturer promos
Dealer (Subprime)	12%+	15%+	Damaged credit

*0% promotions require excellent credit and often shorter terms

Monthly Payment Calculator

$30,000 New Car

Term	Rate	Monthly Payment	Total Interest
36 mo	6.00%	$913	$2,862
48 mo	6.25%	$706	$3,895
60 mo	6.50%	$586	$5,166
72 mo	7.00%	$512	$6,837
84 mo	7.50%	$461	$8,700

$25,000 Used Car

Term	Rate	Monthly Payment	Total Interest
36 mo	7.00%	$772	$2,794
48 mo	7.50%	$604	$3,975
60 mo	8.00%	$507	$5,415
72 mo	8.75%	$449	$7,347

Average Auto Loan Rates by Credit Score

Credit Tier	Average New Car Rate	Average Used Car Rate
Super Prime (781+)	5.64%	6.40%
Prime (661-780)	7.01%	8.75%
Nonprime (601-660)	10.53%	13.25%
Subprime (501-600)	14.08%	17.50%
Deep Subprime (≤500)	18.25%	20.50%

Cost of Poor Credit

$30,000 car, 60-month term:

Credit	Rate	Monthly	Total Interest	Extra Cost
Excellent (750+)	6.00%	$580	$4,799	—
Good (700)	7.50%	$600	$5,983	$1,184
Fair (650)	10.00%	$637	$8,246	$3,447
Poor (600)	14.00%	$698	$11,907	$7,108
Bad (550)	18.00%	$762	$15,689	$10,890

0% APR Deals: Are They Worth It?

Manufacturers sometimes offer 0% financing OR cash rebate:

Example: $35,000 Car

Option A: 0% APR	Option B: Rebate
0% for 60 months	6.00% + $3,000 rebate
Price: $35,000	Price: $32,000
Payment: $583	Payment: $619
Total cost: $35,000	Total cost: $37,134

In this example: 0% APR saves $2,134

When rebate wins: Shorter terms, larger rebates, or if financing elsewhere at low rate.

How Loan Term Affects Total Cost

$35,000 car at 6.50%:

Term	Payment	Total Interest	Car Value at End*
36 mo	$1,073	$3,620	$22,750
48 mo	$829	$4,779	$18,200
60 mo	$684	$6,040	$14,350
72 mo	$589	$7,407	$11,200
84 mo	$522	$8,882	$8,750

*Estimated value assuming 15% annual depreciation

Key insight: 72-84 month loans often lead to being “underwater” (owing more than car is worth).

Getting Preapproved

Benefits of Preapproval

Benefit	Details
Know your budget	Shop with confidence
Negotiate better	Leverage against dealer
Compare rates	Find best offer
Faster closing	Financing ready

Where to Get Preapproved

Credit unions - Often best rates
Online lenders - Quick, multiple offers
Banks - Good for existing customers
Comparison sites - See multiple offers

Strategies for Better Rates

Strategy	Potential Savings
Improve credit 50+ points	1-3% lower rate
Make larger down payment	Lower rate tier
Choose shorter term	0.25-0.75% lower
Buy newer car	Lower used car rates
Get preapproved	Negotiate from strength
Check credit unions	Often lowest rates
Refinance later	If rates drop or credit improves

Auto Loan Rate Trends

Period	New Car Avg	Used Car Avg
March 2026	7.00%	10.50%
2025 Average	7.15%	10.75%
2024 Average	7.30%	11.25%
2023 Average	7.00%	11.00%
2022 Average	5.15%	8.50%
2021 Average	4.10%	7.75%
2020 Average	4.25%	8.00%

When to Refinance Your Auto Loan

Consider refinancing if:

Credit score improved 50+ points
Interest rates have dropped
You’re paying above 8% on new car
You’re paying above 10% on used car
You have 24+ months remaining

Refinance Example

Current	After Refinance
$22,000 remaining	$22,000 remaining
12% rate	7% rate
48 months left	48 months
Payment: $579	Payment: $527
Savings	$52/month, $2,496 total

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