Average Car Loan Interest Rate by Credit Score in 2026

If you've paid any attention to car prices in recent years, you know that vehicle costs have skyrocketed. And if you're planning to finance a vehicle, your credit score plays a huge role in the interest rate you'll qualify for. A lower credit score typically means you'll pay more to borrow money. That's why it helps to understand average car loan interest rates and what you can do to try to get a more favorable rate.

Here's a quick breakdown of average car loan interest rates by credit score, along with some tips on what you can do to improve your own score.

What is the average car loan interest rate by credit score?

According to data from Experian's State of the Automotive Finance Market report, credit scores are grouped into tiers, each associated with a different average interest rate for car loans.

Super Prime (781-850)

Borrowers in the top credit score range enjoy the lowest rates. If your score falls in this range, you might qualify for a new car loan rate around 5.08% and a used car rate around 6.82%.

Prime (661-780)

People in the prime tier also get solid rates. In this range, the average new car rate is around 6.70% and the used car rate is around 9.06%.

Nonprime (601-660)

Once your score drops into this zone, rates start to climb. Average rates for nonprime borrowers are approximately 9.73% for new cars and 13.99% for used cars.

Subprime (501-600)

Subprime borrowers pay significantly more. Typical rates in this range are around 12.84% for new and 18.97% for used vehicles.

Deep Subprime (300-500)

If your credit score is in this range, you may have difficulty getting approved at all. Rates can reach as high as 15.77% for new cars and 21.55% for used cars.

These are national averages, so individual offers will vary depending on the lender, the loan term, and other factors like your income and down payment.

Why does your credit score affect your interest rate?

Lenders view your credit score as an indicator of risk. The higher your score, the more likely you are to make payments on time—at least, that's how lenders see it. As a result, they reward higher scores with lower interest rates.

If your score is low, lenders consider you a higher risk. To offset that risk, they charge more interest. Over the life of a loan, that difference in rates can add up to thousands of dollars.

Other factors that affect your car loan rate

While your credit score is important, lenders also consider:

• Your debt-to-income ratio
• The loan term (shorter terms often mean lower rates)
• The age and type of vehicle (new vs. used)
• The size of your down payment
• The lender itself (banks, credit unions, and dealerships all have different rate structures)

How to get a better car loan rate

If you're not happy with the rates you're being quoted, there are steps you can take:

• Check your credit report for errors. Mistakes on your report can drag down your score unnecessarily.
• Pay down existing debt. Lowering your credit utilization can boost your score.
• Avoid opening new accounts before applying. New inquiries can temporarily lower your score.
• Save for a larger down payment. It reduces the amount you need to finance and may improve your terms.
• Shop around. Different lenders offer different rates, so it pays to compare.

Build your credit now to improve future rates

If your score isn't where you want it to be, now is a great time to start working on it. Kikoff can help.

Kikoff offers credit lines, secured credit cards, and other tools to help you build credit while brightening your financial future.

It's free to join, and there's no hard credit check required. Build credit responsibly with Kikoff's plans.