A "good" car loan interest rate depends on your credit score, the vehicle type (new vs. used), and current market conditions. In 2026, a good rate for a new car is generally under 6% APR for borrowers with prime or super-prime credit. For used cars, a good rate is under 9% APR.
Current average rates by credit tier (based on Experian Q3–Q4 2025 data):
Credit Tier
Score
New Car APR
Used Car APR
Super Prime
781–850
~4.88–5.25%
~7.13%
Prime
661–780
~6–7%
~9–11%
Near Prime
601–660
~9–10%
~13–14%
Subprime
501–600
~13.18%
~18.86%
Deep Subprime
≤500
~15.85%+
~21%+
The average rate for all new car loans in Q3 2025 was 6.56% APR; for used cars it was 11.40% APR (Experian). As of early 2026, rates are projected to decline modestly — forecasters expect the average new car rate to settle around 7.1% for the full year.
How to get the best rate:
Check and improve your credit score before applying.
Get pre-approved from a credit union (credit unions consistently offer the lowest auto loan rates).
Compare at least 3–4 lenders.
Consider a shorter loan term — lenders often offer lower rates on 36–48 month loans than on 72–84 month loans.
Make a larger down payment to reduce your loan-to-value (LTV) ratio
