Average Car Loan Interest Rates by Credit Score (December 2022)

Average Auto Loan Rates by Credit Score

Here are the most recent average auto loan rates for each credit score bracket.

Average rates for Q3 (April – June) 2022

Actual interest rates are based on many factors such as state, down payment, income, and others.
Source: Experian: State of the Automotive Finance Market Q3 2022

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Use our auto loan calculator below to see just how much your credit score can affect your monthly payment and the total amount of interest you end up paying for your loan.

Average Rates for a New Car
Most dealerships will advertise plenty of incentives for buying a new vehicle, such as cash rebates, low interest rates, or special lease offers. Buying a new car generally comes with much better interest rates than buying a used vehicle.
Here’s what you can realistically expect to get based on national averages.
Average Rates for a Used Car
We see incredible offers online and on TV for new car loan rates, but we rarely see used auto rates advertised. Borrowers will usually pay a higher interest rate for a used car loan.
Rates are higher for used cars because their value is lower. If the lender has to repossess your car, it may be difficult for them to sell it for enough to cover your balance. That means more risk to the lender. Lenders charge higher rates when their risk rises.
Here’s the rate you can expect to get based on national averages. 
You can see the impact of the higher rates. The difference, of course, is that the average sale price of a new car in the US is $39,960, while the average price of a used car is $22,000. That’s a big difference!
Even with higher interest rates, used cars can be a good deal simply because the sticker price is often much lower than the price of a used car.
⚠️ Be Careful!
Buying a used car has its risks. That’s why you always want to check the vehicle’s history. You can run a vehicle history report on sites like Carfax using the Vehicle Identification Number (VIN). If the dealer or seller will not give you the VIN, consider this a major red flag and move on to another vehicle.
Average Auto Refinance Rates
Refinance rates are usually the same as rates for a loan taken at the time of sale, so the figures quoted above will apply.
How Your Credit Score Impacts Auto Loan Rates
Your credit score has a huge impact on the interest rate you’re offered and on the cost of your loan. In the table below, you can see the average interest rates for both new and used cars by credit score to see just how much of an effect it has. 
Average auto loan rates by credit score (Q3 2022)



Category
Score Range
New car
average interest rate
Used car
average interest rate




Deep subprime
300-500
12.93%
19.81%


Subprime
501-600
10.11%
15.86%


Near prime
601-660
7.25%
9.81%


Prime
661-780
4.90%
5.47%


Super prime
781-850
3.84%
3.69%



Actual interest rates are based on many factors such as state, down payment, income, and others. Source: Experian: State of the Automotive Finance Market Q3 2022
How Your Credit Score Affects the Monthly Payment
Here’s an example to illustrate the difference your credit score makes in determining your monthly payment. 


Let’s assume you’re taking out a new car loan with the following terms:
Car cost: $30,000
Down payment: $3,000
Loan term: 48 months



Credit Score
Interest Rate
Monthly Payment
Total Interest Paid




300-500
12.93%
$723.4
$7,723


501-600
10.11%
$686.22
$5,939


601-660
7.25%
$649.68
$4,185


661-780
4.90%
$620.57
$2,787


781-850
3.84%
$607.70
$2,170





As you can see, your credit score plays a major role in determining the interest rate you’re offered and the cost of your loan.