The interest rate on a car loan varies depending on several factors, such as credit score, income, and the type of vehicle being financed. According to Experian’s State of the Automotive Finance Market report, the average auto loan interest rate for new cars in the second quarter of 2023 was 6.63%, while the average interest rate for used cars was 11.38% . 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 interest rate you receive is based on your credit score, with higher scores generally resulting in lower interest rates. Other factors that can influence the interest rate include the loan term, the amount of the loan, and the type of vehicle being financed.

It is important to note that interest rate and annual percentage rate (APR) are not the same. Interest rate is the percentage you pay to borrow money, while APR includes interest rate plus any fees charged by a lender. When comparing loan offers, make sure to compare the APR.

In summary, the interest rate on a car loan can range from 5.07% to 21.38%, depending on various factors such as credit score, income, and the type of vehicle being financed. It is important to compare APRs when comparing loan offers.