Average auto loan interest rates by credit score in 2026

In the second quarter of 2026, the average interest rate for new car loans stood at 6.35%, while used car loan rates averaged 11.19%, according to Experian's State of the Automotive Finance Market report. Your credit score is a significant factor in determining your auto loan interest rate, but other factors also come into play. To secure a competitive interest rate, it's recommended to shop around with multiple lenders and work on improving your credit score before applying.

Comparing average auto loan interest rates by credit score in 2026 is crucial, as it helps you determine if the loan you receive is competitive and if you need to shop around for better rates. Expect new car rates to range between 4.5% and 16%, while used car rates trend higher, from just over 6% to 22%. Your APR is influenced not only by your credit score but also by other factors, so if your auto loan offer doesn't align with market averages for your credit score range, it's a sign to keep shopping.

Preapproval processes offered by most lenders allow you to check your rates without affecting your credit multiple times within a 14-day period. Lenders consider your income, debt-to-income (DTI) ratio, and personal factors like education or professional experience when evaluating your loan application. The most common credit scores used for car loans are the FICO score and VantageScore, which assess your creditworthiness based on risk factors.

Improving your chances of getting a reasonable interest rate, regardless of your credit score, involves prequalifying with multiple lenders, making a larger down payment, obtaining a co-signer with an excellent credit score, and choosing a shorter loan term. These strategies can lead to significant savings over the life of your loan.