Wealthy PotAuto Loan Rates Today: Averages by Credit Score and 9 Lenders' Rates
The average rate on a new-car loan was 6.35% and on a used-car loan 11.19% in the second quarter of 2026, according to Experian. Banks charged 7.54% on 60-month new-car loans in August 2026, the Federal Reserve reports, while credit unions averaged about 2 points less. Your credit score matters most: Experian's averages run from 4.41% for the best scores to 16.11% for the lowest on new cars. Below are the averages, what 9 lenders publish today, and a calculator for your payment.
The Short Answer
- Average rates (Experian, Q2 2026): 6.35% new, 11.19% used.
- Banks (Federal Reserve, August 2026): 7.54% on 60-month and 7.17% on 72-month new-car loans.
- Credit unions vs banks (NCUA, end of 2025): 5.44% vs 7.41% on 60-month new-car loans, and 5.41% vs 7.69% on 36-month used-car loans.
- Lowest published rates: 4.19% at Navy Federal and PenFed for short new-car loans with excellent credit; banks' samples run 5.49% to 6.81%.
- On $35,000 over 60 months, 5.44% costs $667.57 a month and 7.41% costs $699.83, about $1,936 more in interest over the loan (our arithmetic).
- New for 2025 to 2028: up to $10,000 a year of interest on a new, U.S.-assembled vehicle can be deducted, phasing out above $100,000 of income ($200,000 joint).
Auto Loan Rates by Credit Score
| Credit tier (VantageScore 4.0) | New car APR | Used car APR | $35,000 new, 60 months: payment | Total interest |
|---|---|---|---|---|
| Super prime (781-850) | 4.41% | 6.29% | $651.07 | $4,064 |
| Prime (661-780) | 6.15% | 8.81% | $679.09 | $5,746 |
| Near prime (601-660) | 9.71% | 13.93% | $738.66 | $9,320 |
| Subprime (501-600) | 13.52% | 19.10% | $805.71 | $13,342 |
| Deep subprime (300-500) | 16.11% | 21.62% | $853.18 | $16,191 |
APRs: Experian, State of the Automotive Finance Market, Q2 2026 (average rates by credit tier). Payments and interest are our arithmetic on a hypothetical $35,000, 60-month new-car loan at each tier's average, with no fees or taxes.
The same $35,000 car costs about $12,000 more in interest for a deep-subprime borrower than for a super-prime one. Used-car rates are higher at every tier. For payment averages, see average car payment.
Average Rates: Banks, Credit Unions, Finance Companies
| Source and loan | Rate | Period |
|---|---|---|
| Commercial banks, new car, 60 months | 7.54% | August 2026 (Federal Reserve G.19) |
| Commercial banks, new car, 72 months | 7.17% | August 2026 |
| Finance companies, new car (average) | 6.3% | June 2026; average term 67 months, average amount $41,705 |
| Credit unions, new car, 60 months | 5.44% (banks 7.41%) | December 2025 (NCUA) |
| Credit unions, new car, 48 months | 5.32% (banks 7.33%) | December 2025 |
| Credit unions, used car, 48 months | 5.53% (banks 7.73%) | December 2025 |
| Credit unions, used car, 36 months | 5.41% (banks 7.69%) | December 2025 |
Federal Reserve, G.19 Consumer Credit (released October 7, 2026); NCUA, Credit Union and Bank Rates, Q4 2025 (rates as of December 26, 2025, from S&P Global data; the latest quarter NCUA has published).
| Year | Banks, new car, 60 months | Banks, new car, 72 months |
|---|---|---|
| 2026 (August) | 7.54% | 7.17% |
| 2025 | 7.65% | 7.80% |
| 2024 | 8.16% | 8.29% |
| 2023 | 7.83% | 7.89% |
| 2022 | 5.36% | 5.50% |
| 2021 | 4.82% | 4.82% |
Federal Reserve, G.19, annual figures and the latest month (not seasonally adjusted).
What Lenders Publish
| Lender | New car (as low as) | Used car (as low as) | Conditions |
|---|---|---|---|
| Navy Federal Credit Union | 4.19% (up to 36 months), 4.59% (37-60), 4.89% (61-72), 6.29% (73-84) | 5.09% (up to 36), 5.59% (37-60), 5.69% (61-72), 7.28% (73-84) | Excellent credit; membership required; refinance at the same rates (Oct 21) |
| PenFed Credit Union | 4.19% (36 months) to 5.74% (84) | 4.79% (36) to 6.24% (84) | New = 2025 or newer, under 7,501 miles; minimums of $15,000-$20,000 for terms over 60 months (Oct 1) |
| DCU | 4.99% (up to 65 months), 5.49% (72), 6.99% (84) | Same | Includes a 0.50-point discount for $500+ monthly direct deposit and electronic payments; refinance at the same rates |
| Consumers Credit Union | 4.99% (up to 60 months, 2025+ models) | 5.49% to 8.99% by model year | Autopay assumed (Oct 12) |
| Bank of America | 5.49% (60 months, through a dealer) | 5.69% | Before up to 0.50 points of Preferred Rewards discounts (Oct 20) |
| BECU | 5.89% to 18% (2024+ models) | 6.19% to 18% | 60 months or less, loan-to-value 90% or less (Oct 15) |
| Alliant Credit Union | 6.34% (60 months) | 6.59% | With autopay (0.40 higher without) |
| U.S. Bank | 6.81% (60 months); 6.92% to 7.88% for other terms | Not advertised | Credit score 800+, vehicle under 1 year old, $40,000+, through a dealer (Oct 21) |
| LightStream | 9.99% to 17.74% | Same | Unsecured loan (no lien on the car), with autopay; $5,000 to $100,000 (Oct 21) |
Each lender's own rate page or the rate data the page loads, read October 21, 2026 (lenders' own dates in brackets). "As low as" rates need excellent credit. Chase and Ally give personalized quotes only, Wells Fargo lends only through dealers, and Capital One's site could not be read; none is listed. We earn nothing from these lenders.
Credit unions publish the lowest rates, but you have to join, and each has its own membership rules, so check eligibility first. Bank rates usually come through a dealer, and the dealer can mark them up (see below).
Car Loan Calculator
Enter the price, down payment, trade-in, sales tax, fees, rate and term to see your monthly payment and total interest. The full version is on our car loan calculator page.
How the Loan Term Changes the Cost
| $40,000 at 7.00% | Monthly payment | Total interest |
|---|---|---|
| 60 months | $792.05 | $7,523 |
| 72 months | $681.96 | $9,101 |
| 84 months | $603.71 | $10,711 |
Our arithmetic, hypothetical, same rate for each term. In practice lenders usually charge more for longer terms (Navy Federal's published rate rises from 4.59% to 6.29% between 60 and 84 months).
Stretching to 84 months cuts the payment by about $188 but adds about $3,188 of interest, and you stay longer with a loan bigger than the car's value. Experian's average term in Q2 2026 was 69.5 months for new cars and 67.9 for used.
The Car Loan Interest Deduction
- What: for tax years 2025 through 2028, you can deduct up to $10,000 a year of interest on a qualifying car loan, whether or not you itemize.
- Which vehicles: new cars, minivans, vans, SUVs, pickups and motorcycles under 14,000 pounds that had final assembly in the United States, bought for personal use. Used vehicles and leases don't qualify.
- Which loans: taken out after December 31, 2024 and secured by a lien on the vehicle. You report the VIN on your return.
- Income limit: the deduction phases out above $100,000 of modified AGI ($200,000 for joint filers).
The deduction lowers taxable income, not the tax itself: at a 22% bracket, $2,000 of interest saves about $440 (our arithmetic). It doesn't apply to an unsecured loan such as LightStream's. See the 2026 tax brackets.
How to Get a Lower Rate
- Get preapproved first. The CFPB suggests getting a prequalification or preapproval from a bank or credit union, so you have a rate to compare with the dealer's.
- Shop within a short window. Rate shopping for the same type of loan within a short period (14 to 45 days, depending on the scoring model) usually counts as one inquiry for your credit score, the CFPB says.
- Know about dealer markups. When a dealer arranges your loan, the lender quotes the dealer a "buy rate" and the dealer may offer you a higher rate; the rate is negotiable.
- Put more down and keep the term short. Lenders price by loan-to-value and term, as the lender table shows.
- Make sure the deal is final before you drive away, so financing can't be changed afterwards.
Already have a loan? Several credit unions above refinance at their purchase rates. To weigh a loan against leasing, see lease vs buy; for prices, see average car price. For other borrowing, compare personal loan rates.
Sources & Methodology
- Federal Reserve, G.19 Consumer Credit (released October 7, 2026): bank new-car rates, finance company rates, term and amount.
- NCUA, Credit Union and Bank Rates, Q4 2025.
- Experian, average car payment and auto loan rates by credit score (State of the Automotive Finance Market, Q2 2026).
- IRS, Working Families Tax Cuts: no tax on car loan interest.
- CFPB: how lenders set auto loan rates, buy rates, negotiating the rate and rate changes after you drive home.
- Lender rate pages: Navy Federal, PenFed, DCU, Consumers Credit Union, Bank of America, BECU, Alliant, U.S. Bank, LightStream.
Method notes. Lender rates were read from each lender's page or the rate data that page loads (PenFed, Bank of America, U.S. Bank and LightStream render rates from a data file). Payments and interest labelled "our arithmetic" use the standard loan formula, a constant rate and no fees or taxes, and are hypothetical. Experian uses VantageScore 4.0 tiers.
This page is general information, not financial or tax advice. Rates checked October 21, 2026; confirm the current rate with the lender before you apply.
FAQ
What is a good auto loan rate right now?
Below the average for your credit tier. Experian's Q2 2026 averages were 4.41% (new) and 6.29% (used) for scores of 781-850 and 6.15% and 8.81% for 661-780. Credit unions publish new-car rates from about 4.19%.
Are auto loan rates going down?
Bank rates on 60-month new-car loans averaged 7.54% in August 2026, below 8.16% in 2024 but above 2021-2022 levels. The Federal Reserve raised its benchmark rate in September 2026; its next decisions are on October 28 and December 9.
Are credit union car loans cheaper?
On average, yes. At the end of 2025 credit unions averaged 5.44% on 60-month new-car loans against 7.41% at banks (NCUA).
Why are used car loan rates higher?
Used cars are worth less and are riskier collateral, so lenders charge more. Experian's Q2 2026 average was 11.19% for used cars against 6.35% for new.
Is car loan interest tax-deductible?
For 2025 through 2028, up to $10,000 a year of interest on a loan for a new, U.S.-assembled vehicle for personal use, phasing out above $100,000 of modified AGI ($200,000 joint). Used cars and leases don't qualify.