Average Auto Loan Rates by Credit Score (2026)

New and used car loan rate benchmarks by credit tier. What to expect and how to avoid dealer markup.

New car loan rates

Excellent (800+): 4% – 5.5%
Very Good (740–799): 5.5% – 7%
Good (670–739): 7% – 10%
Fair (580–669): 10% – 15%
Poor (300–579): 15% – 22%

Used car loan rates

Used car rates run 1-3% higher than new across every credit tier because lenders see more risk in older vehicles with less certain resale value.

Excellent: 5% – 7%
Very Good: 7% – 9%
Good: 9% – 13%
Fair: 13% – 18%
Poor: 18% – 25%

The dealer financing trap

The dealership's Finance & Insurance (F&I) office is a profit center, not a service center. Here's what happens:

The lender approves you at a "buy rate" — say 6%
The dealer marks it up to 8% and keeps the 2% spread
You never see the buy rate — you only see the markup

⚠️ Always get pre-approved before visiting a dealer. Walk in with a rate from your bank or credit union. The dealer can try to beat it, but they can't mark up a rate you already have in writing. This single step saves the average buyer $1,000-$3,000 over the loan term.

Where to get the best auto loan rate

Your credit union — consistently the lowest auto rates
Your bank — relationship pricing may help
Online auto lenders — competitive for good credit
The dealer — last resort, and only if they beat your pre-approval

Already overpaying?

If your credit has improved since you got your auto loan, refinancing could save you thousands. Use our Refinance Break-Even Calculator to see if it's worth it.