Banking
Auto Loan Rates Today: Average Car Loan Interest Rates
Average new-car loan rates are published by the Federal Reserve from commercial bank and finance company reporting. Use them as the benchmark: an offer well above the average for your credit tier means the dealer is making money on the financing, not just the car.
| Series | Latest | Prior | Year over year | As of |
|---|---|---|---|---|
| New car loan, 60-month bank rate | 7.47% | 7.37% | -0.16 pts | 2026-05-01 |
| New car loan, 72-month finance company rate | 6.97% | 7.53% | -0.76 pts | 2026-05-01 |
Source: Federal Reserve Board (G.19), via FRED.
Where car loan rates have moved
New-car loan rates from Federal Reserve G.19 data, by term.
Source: Federal Reserve Board (G.19), via FRED. Latest observation 2026-05-01.
Run your own numbers
Averages tell you whether an offer is competitive. The calculator tells you what it costs you.
Open the auto loan calculatorWhat sets the rate you are offered
Credit tier does most of the work. The spread between a super-prime borrower and a subprime borrower on the same car is routinely 8 to 12 percentage points, which on a $35,000 loan is thousands of dollars a year.
After that: new versus used (used prices two to four points higher), term length, loan-to-value after your down payment, and whether the manufacturer is subsidising financing on that specific model.
Longer terms are more expensive, not cheaper
Stretching a $34,000 loan at 7.5% from 60 to 84 months drops the payment by roughly $150 but adds close to $3,900 in interest, and long terms usually carry a higher rate to begin with.
They also extend negative equity. The balance falls slower than the car depreciates, so for years you would owe more than the car is worth if you sold it or wrote it off.
How to beat the average
Get a pre-approval from a credit union or bank before you shop. It caps what the dealer can charge and turns the conversation back to the total price rather than the monthly payment.
Put down enough to keep the loan-to-value under 100% including tax and fees, keep the term at 60 months or less, and price insurance for the exact vehicle before signing.
Budget the insurance, not just the payment
Insurance is often the second-largest line in the cost of a car. Compare quotes for the exact vehicle before you sign the finance agreement.
Compare auto insuranceMethodology
Auto loan rates come from the Federal Reserve Board's G.19 Consumer Credit release via FRED, refreshed on a schedule. Bank series are quarterly; finance company series are monthly.
Figures are national averages for new-car loans. Used-car financing is not included and typically prices higher.
Averages are not offers. Your rate depends on your credit profile, the vehicle, the term and the lender.
Frequently asked questions
What is the average car loan interest rate?
The Federal Reserve publishes average new-car loan rates from commercial banks and finance companies. The current figures and their year-on-year change are in the table above. Used-car rates typically run two to four points higher.
What credit score do I need for the best auto loan rate?
Lenders reserve their advertised rates for scores above roughly 720. Between 660 and 720 you can expect a few points more, and below 620 pricing rises sharply.
Should I finance through the dealer or my bank?
Get a pre-approval from a bank or credit union first, then let the dealer try to beat it. Dealer financing can be competitive, especially with manufacturer subsidised rates, but a pre-approval keeps the negotiation on total price rather than monthly payment.
Do longer car loans have higher rates?
Yes. Terms of 72 and 84 months usually price above 48 and 60 months, and the extra months multiply the interest paid. A lower monthly payment on a long term almost always costs more overall.
Can I refinance a car loan?
Yes, if the car is not too old and you are not deeply underwater. Refinancing makes sense when your credit has improved or market rates have fallen since you bought.
Think Bigger Today keeps its editorial standards independent of commercial relationships. This review was written by our team using publicly available information, including regulatory filings and published rate sheets. the named company did not review, approve or endorse it, and is not responsible for its accuracy. Companies that work with us commercially get no preferential coverage, scoring or placement. This page may link to our free matching service, for which we can be paid a referral fee — that fee never decides what we publish, and you may or may not be matched with the named company. Figures can change without notice; always confirm the current terms with the provider. Nothing here is financial, legal or tax advice.