Auto Loan Rates

Auto loan rates are different for new and used cars. Used cars can come with higher rates because their resale value is harder to predict than new cars. For more information on Auto Loans, click here.

Your credit score also affects the rate you’ll get on new or used vehicles. The higher your score, the better your rate. In addition to your credit, the loan term and the age of the car you’re buying factor into the interest rate you’ll get on a car loan.

U.S. auto loan interest rates in 2017 average 4.21 percent for a five-year loan, according to ValuePenguin, and anywhere from 3% APR to 10% APR is the range for a typical auto loan. ValuePenguin breaks that down to average rates according to terms:

  •       36-month: 3.71 percent
  •       48-month: 3.81 percent
  •       60-month: 3.93 percent
  •       72-month: 3.78 percent

Keep in mind that the average rates can vary quite differently from the rate you might get because of the other things that factor into your rate. For instance, if you have good credit you might be offered a rate of 3.74 percent on a 2018 model care but a 4.24 percent rate on a used one.

Auto loan rates have dropped dramatically over the last decade. When the 2009 financial crisis happened, interest rates fell as a way of stimulating the economy — and the auto arena was no exception. Today, the average interest rate on a 48-month new car loan is more than 40 percent lower than in the last 10 years. It’s a good time to buy a vehicle, particularly if your credit is strong.