Average Car Loan Interest Rate By Credit Score

Credit scores of 719 for a new car or 655 for a used car or higher will help you qualify for the lowest auto loan interest rates.

Average car loan interest rate by credit score. Average auto loan rates for fair credit. In the fourth quarter of 2019 the average auto loan rate for a new car was 5 76 while the typical used car loan carried an interest rate of 9 49 according to experian s state of the automotive. The table below shows the average interest rate for new and used car loans based on credit scores according to experian data from the first quarter of 2020. Average interest rates on new cars.

New cars have lower interest rates because they re covered under warranty are more reliable and lenders know their market value. All the calculation and examples below are just an estimation. In fact the current average interest rate is more than double what it is for prime and super prime credit borrowers. Individuals with a 800 fico credit score pay a normal 3 4 interest rate for a 60 month new auto loan beginning in august 2017 while individuals with low fico scores 500 589 were charged 14 8 in interest over a similar term.

However while people in this range would generally get charged below average interest rates from banks credit unions and other lenders they are unlikely to qualify for zero percent financing offers from car companies. There s no guessing on the condition of a new vehicle. Historical auto loan rates. Getting a car loan when your credit is between 600 and 699 can be significantly more expensive than it is for borrowers with better credit scores.

For individual consumers however rates vary based on credit score term length of the loan age of the car being financed and other factors relevant to a lender s risk in offering a loan. Your credit score places you in a tier that lenders use to determine the interest rate and other terms for an auto loan. Even if your credit score is lower you may still qualify for. The national average for us auto loan interest rates is 5 27 on 60 month loans.