Key takeaways – New car loans had an average interest rate of 6.39%, while used car loan rates averaged 11.43% in the first quarter of 2026. – Your credit score plays a significant role in determining your interest rate, but other factors also play a role. – The best way to…
cure a competitive interest rate on your auto loan is to shop rates with multiple lenders and improve your credit score before you apply. The average auto loan interest rate for new cars in the first quarter of 2026 was 6.39%, while the average used car loan interest rate was 11.43%, according to Experian’s State of the Automotive Finance Market report
These average rates matter because they let you know if the auto loan you receive is actually competitive — and whether you need to spend more time shopping around for the best auto loan rates. Learn the market so your next car loan is affordable for your budget and so you avoid paying more interest to your lender. Average auto loan interest rates by credit score Expect new car rates between 4.5% and 16%.
Used car rates trend higher, ranging from just over 6% to 22%. Your APR won’t be solely based on your credit, but it is a good way to check that you aren’t overpaying for a car loan. If your auto loan offer doesn’t align with market averages for your credit score range, it’s a good sign that you need to keep shopping.