Understand how your credit score impacts your auto loan rate and total cost.
Average Auto Loan Rates by Credit Score
Experian, Q2 2026, VantageScore 4.0 credit tiers. These are averages across lenders, not offers.
Experian reports an overall average of 6.35% for new-car loans and 11.19% for used-car loans in Q2 2026, with an average new-car loan of $43,610 and an average used-car loan of $27,852.
| Credit Score | Credit Tier | New Car Average Rate | Used Car Average Rate |
|---|---|---|---|
| 781 or above | Super Prime | 4.41% | 6.29% |
| 661-780 | Prime | 6.15% | 8.81% |
| 601-660 | Near Prime | 9.71% | 13.93% |
| 501-600 | Subprime | 13.52% | 19.10% |
| 300-500 | Deep Subprime | 16.11% | 21.62% |
How Credit Score Affects Your Payment
$30,000 new-car loan, 60-month term, at Experian’s Q2 2026 average new-car rate for each tier (payments computed from the rate):
| Credit Tier | Rate | Monthly Payment | Total Interest |
|---|---|---|---|
| Super Prime | 4.41% | $558 | $3,484 |
| Prime | 6.15% | $582 | $4,925 |
| Near Prime | 9.71% | $633 | $7,988 |
| Subprime | 13.52% | $691 | $11,436 |
| Deep Subprime | 16.11% | $731 | $13,878 |
Cost of Lower Credit
| Compared to Super Prime | Extra Monthly | Extra Over Loan |
|---|---|---|
| Prime | +$24 | +$1,441 |
| Near Prime | +$75 | +$4,505 |
| Subprime | +$133 | +$7,952 |
| Deep Subprime | +$173 | +$10,394 |
Credit Tier Definitions
| Tier | Score Range |
|---|---|
| Super Prime | 781 or above |
| Prime | 661-780 |
| Near Prime | 601-660 |
| Subprime | 501-600 |
| Deep Subprime | 300-500 |
Tiers are Experian’s, based on VantageScore 4.0. Your lender may use a different scoring model, so the tier a lender places you in can differ from your own score.
Other Things That Change Your Rate
Your credit score is one factor. Loan term, down payment, the vehicle’s age, the lender and any promotional offers also change the rate, and this page does not quote averages for them. Compare offers from a credit union, a bank, an online lender and the dealer before you sign.
How to Improve Your Rate
| Strategy | Why It Helps |
|---|---|
| Pay down credit cards | Lower utilization can raise your score |
| Dispute errors on credit report | Remove inaccurate items |
| Get preapproved at several lenders | Lets you compare real offers |
| Make a larger down payment | Lowers the amount financed and the lender’s risk |
Refinancing Based on Credit Improvement
If your credit improves, refinancing may lower your rate. Example using Experian’s Q2 2026 new-car averages for a borrower who moves from Near Prime (9.71%) to Prime (6.15%), with the same $22,000 balance and 48 months remaining:
| Original Loan | Refinanced | |
|---|---|---|
| Balance | $22,000 | $22,000 |
| Rate | 9.71% | 6.15% |
| Term remaining | 48 months | 48 months |
| Payment | $555 | $518 |
| Monthly savings | $37 | |
| Total savings | $1,763 |
Your own refinance rate depends on the lender, and fees can reduce the savings.
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The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy