The average interest rate on a car loan depends on several factors, including credit score, income, credit history, and the type of car loan. According to Experians State of the Automotive Finance Market report, the overall average auto loan interest rate in the second quarter of 2023 was 6.63% for new cars and 11.38% for used cars. However, the average auto loan interest rates across all credit profiles range from 5.07% to 14.18% for new cars and 7.09% to 21.38% for used cars. The following table shows average interest rates for new and used vehicles across five credit score categories, according to Experian:
| Credit Score Range | Average Interest Rate, New Cars | Average Interest Rate, Used Cars |
|---|---|---|
| 781-850 | 5.18% | 6.79% |
| 661-780 | 6.40% | 8.75% |
| 601-660 | 10.49% | 14.28% |
| 501-600 | 16.46% | 19.83% |
| 300-500 | 19.98% | 24.99% |
Its worth noting that the rates listed above are just averages, and individual rates can vary based on several personal factors, such as the lender, the size of the loan, the term of the loan, and the amount of the down payment.
