How Are Auto Loan Rates Affected by Credit Score? 2026 Data on APR, Monthly Payments, Borrower Distribution, Rate by Tier, and Risks

September 21, 2026 · veritasfs

Research compiled by Veritas Financial Services | Last updated: June 2026

Auto loan rates depend heavily on borrower credit scores, which affect everything from Annual Percentage Rate (APR), to monthly payments, to dealer markups. Good credit scores can earn borrowers lower overall interest rates, net smaller monthly payments, and can come with better markup costs, while poor credit scores often come with extra financial burden to make up for a borrower’s lack of credit.

The report below compiles loan rate data from multiple sources published between 2024 and 2026, covering average car loan rates for new or used vehicles based on APR, payments, borrower credit, and financial risks. Data was compiled in June 2026 from publicly available automotive industry research, federal financing publications, and market data sources.

Average APR by Credit Tier

Borrower credit tier strongly influences Annual Percentage Rate (APR) for auto loans. Data shows that borrowers can pay up to 6% more in APR for a used car with poor credit than for a new car, with a lower spread among borrowers with good credit.

Average Auto Loan APR by Credit Score Band, 2024–2026

Credit Score BandCredit Score RangeAverage APR (2024)Average APR (2025)Average APR (2026)
Superprime720–8507.45%6.82%7.70%
Prime660–7199.59%9.06%9.98%
Near-Prime620–65913.96%13.74%14.49%w
Subprime580–61919.19%18.99%19.42%
Deep Subprime300–58021.89%21.58%21.85%

Sources: Table 11

Source note: Data sourced July 6, 2026.

Overall APR Change Over Time, 2024-2026

New car APR and used car APR by quarter 

Sources: Table 11

New-vs.-Used Rate Spread by Tier

Credit Score BandCredit Score RangeAverage APR (New)Average APR (Used)New-vs.-Used Spread
Superprime720–8504.60%7.00%+2.40%
Prime660–7196.46%9.08%+2.62%
Near-Prime620–6599.77%14.11%+4.34%
Subprime580–61913.30%19.20%+5.90%
Deep Subprime300–58015.86%15.86%+5.70%

Sources: Table 22

Maximum State Auto Loan Rate: Most and Least Expensive States (2026)

Top 5 vs. bottom 5 states by maximum auto loan APR

Sources: Figure 33

What Each Tier Pays

Credit tier also influences monthly payments. Borrowers with bad credit often have lifetime costs gaps nearing $10,000 when it comes to loan interest, and their monthly payments are much higher.

Monthly Payment and Total Interest Paid Over the Loan by Credit Tier, 2024–2026, New Car ($35,000 Loan, 60 Months)

MetricSuperprimePrimeNear-PrimeSubprimeDeep Subprime
Average APR4.60%6.46%9.77%13.30%15.86%
Monthly Payment$654.10$684.16$739.69$801.74$848.53
Total Interest Paid$4,245.90$6,049.58$9,381.51$13,104.58$15,911.84
Total Cost of Loan$39,245.90$41,049.58$44,381.51$48,104.58$50,911.84

Sources: Table 44

Total Lifetime Interest Cost Gap, Superprime vs. Subprime

Vehicle Type & Loan AmountSuperprime Total InterestSubprime Total InterestLifetime Cost Gap (Penalty)
New Car ($35,000 Loan)$4,245.90$13,104.58+$8,858.68
Used Car ($25,000 Loan)$4,701.80$14,076.08+$9,374.28

Sources: Table 55

Payment Difference by Tier

Credit Score BandMonthly Payment (New)Increase from SuperprimeMonthly Payment (Used)Increase from Superprime
Superprime$654.10Baseline$495.03Baseline
Prime$684.16+$30.06$519.93+$24.90
Near-Prime$739.69+$85.59$583.13+$88.10
Subprime$801.74+$147.64$651.27+$156.24
Deep Subprime$848.53+$194.43$684.23+$189.20

Sources: Table 66

Borrower Distribution by Tier

The vast majority of car loan borrowers have either superprime, prime, or near-prime credit. Borrowers with subprime or deep subprime credit only make up about 16% of auto loan borrowers.

Share of Auto Borrowers in Each Credit Tier, 2024–2026

Credit Score BandCredit Score RangeTotal Market ShareShare of New Car LoansShare of Used Car Loans
Superprime720–85031.5%44.8%22.1%
Prime660–71937.7%36.2%38.8%
Near-Prime620–65915.1%12.1%18.5%
Subprime580–61913.4%5.8%17.5%
Deep Subprime300–5802.3%1.1%3.1%

Sources: Table 77

Average Credit Score of New vs. Used Buyers

Automotive SegmentAverage Borrower Credit ScorePrimary Credit Tier ClassificationAverage Financed Amount (Q4 2025)Average Overall APR (Q4 2025)
New Car Buyers751–757Prime(661–780)$43,5826.37%
Used Car Buyers682–691Prime/Near-Prime$27,52811.26%

Sources: Table 88

Tier Mix Trend Over Time

Credit Score Band2023 Share2023 Share2024 Share2025–2026 Share
Superprime28.9%30.2%32.8%31.5%
Prime35.8%36.5%37.1%37.7%
Near-Prime16.9%16.1%14.6%15.1%
Subprime15.6%14.8%13.3%13.4%
Deep Subprime2.8%2.4%2.2%2.3%

Sources: Table 99

Rate by Tier Across Lenders

Lender type also greatly influences loan rates. In general, credit unions and banks offer the best rates, but they tend not to approve poor-credit borrowers, while captive or online lenders may, but at very high rates.

Average Rate by Credit Tier Across Lender Types

New auto loans, 2024–2026

Sources: Figure 1010

Average Rate by Credit Tier Across Lender Types

Used auto loans, 2024-2026

Sources: Figure 1010

* Captive lenders often offer subsidized 0% to 3.9% promotional APRs exclusively to Superprime and top-tier Prime buyers.

** Most mainstream credit unions place strict underwriting caps restricting deep subprime loans.

Best-Available Rate by Tier

Credit Score BandCredit Score RangeBest Available New Car APRBest Available Used Car APR
Superprime720–8503.39%–3.89%4.79%–5.29%
Prime660–7194.99%–5.39%5.59%–6.49%
Near-Prime620–6596.85%–7.50%8.99%–10.50%
Subprime580–6199.99%–11.20%12.50%–14.00%
Deep Subprime300–58012.99%–14.25%15.99%–17.50%

Sources: Table 1111

Risk & Performance by Tier

Risk of delinquency governs a great deal in auto loans. Delinquency is much more common among low-credit borrowers, leading to very low approval rates for these tiers, while high-credit borrowers are often auto-approved or have near-perfect approval rates.

Delinquency and Default Rate by Credit Tier, 2024–2026

Credit Score BandCredit Score Range2024 Average 60+ DPD2025 Average 60+ DPD2026 Current 60+ DPD
Superprime720–8500.08%0.11%0.12%
Prime660–7190.35%0.44%0.55%
Near-Prime620–6591.85%2.10%2.45%
Subprime580–6195.40%6.65%6.90%
Deep Subprime300–58011.20%12.80%13.40%

Sources: Table 1212

Approval Rate by Tier

Credit Score BandTraditional BanksCredit UnionsCaptive/OEM LendersSpecialty/Subprime Lenders
Superprime96%–99%97%–99%98%–99%Auto-Approved
Prime85%–92%88%–94%88%–95%Auto-Approved
Near-Prime55%–68%60%–72%65%–75%90%–95%
Subprime15%–28%20%–35%30%–45%75%–85%
Deep Subprime<5%<8%<10%45%–60%

Sources: Table 1313

Share of Subprime Loans 90+ Days Delinquent

Year/Reporting CycleSubprime 90+ Days Delinquent Share
2024 Average5.40%
2025 Average6.65%
2026 (Current Q1)6.90%

Sources: Table 1414

References:

  1. “New Experian Automotive report shows nearly one-third of automotive loan terms are longer than six years.” (2026, May 28).https://www.experianplc.com/newsroom/press-releases/2026/new-experian-automotive-report-shows-nearly-one-third-of-automot 

1Table 1

  1. Luthi, B. (2025, June 20). Average car loan interest rates by credit score. https://www.experian.com/blogs/ask-experian/average-car-loan-interest-rates-by-credit-score/ 
  2. Bradley, S. (2026, June 11). Average car loan interest rates by credit score. NerdWallet. https://www.nerdwallet.com/auto-loans/learn/average-car-loan-interest-rates-by-credit-score 
  3. Howard, B. (2026, April 2). Average auto loan interest rates by credit score in 2026. Bankrate. https://www.bankrate.com/loans/auto-loans/average-car-loan-interest-rates-by-credit-score/ 
  4. Toth, H. (2025, October 16). Average auto loan rates in 2025: New, used & credit scores. Certified AutoBrokers Inc. https://idrivecertified.com/blog/average-auto-loan-rates-in-2025-new-used–credit-scores 

2Table 2

  1. Luthi, B. (2025, June 20). Average car loan interest rates by credit score. https://www.experian.com/blogs/ask-experian/average-car-loan-interest-rates-by-credit-score/ 
  2. Bradley, S. (2026, June 11). Average car loan interest rates by credit score. NerdWallet. https://www.nerdwallet.com/auto-loans/learn/average-car-loan-interest-rates-by-credit-score 
  3. Howard, B. (2026, April 2). Average auto loan interest rates by credit score in 2026. Bankrate. https://www.bankrate.com/loans/auto-loans/average-car-loan-interest-rates-by-credit-score/ 
  4. Toth, H. (2025, October 16). Average auto loan rates in 2025: New, used & credit scores. Certified AutoBrokers Inc. https://idrivecertified.com/blog/average-auto-loan-rates-in-2025-new-used–credit-scores 

3Figure 3

  1. States where auto loan interest rates are increasing the most (Q3 2024). (n.d.). WalletHub. https://wallethub.com/edu/states-auto-loan-interest-rates-change/142747
  2. Zulovich, N. (2025, October 9). Top 10 states where rates on auto financing are rising most | Auto Remarketing. Auto Remarketing. https://www.autoremarketing.com/subprime/top-10-states-where-rates-on-auto-financing-are-rising-most/

4Table 4

  1. Luthi, B. (2025, June 20). Average car loan interest rates by credit score. https://www.experian.com/blogs/ask-experian/average-car-loan-interest-rates-by-credit-score/ 
  2. Bradley, S. (2026, June 11). Average car loan interest rates by credit score. NerdWallet. https://www.nerdwallet.com/auto-loans/learn/average-car-loan-interest-rates-by-credit-score 
  3. Howard, B. (2026, April 2). Average auto loan interest rates by credit score in 2026. Bankrate. https://www.bankrate.com/loans/auto-loans/average-car-loan-interest-rates-by-credit-score/ 
  4. Toth, H. (2025, October 16). Average auto loan rates in 2025: New, used & credit scores. Certified AutoBrokers Inc. https://idrivecertified.com/blog/average-auto-loan-rates-in-2025-new-used–credit-scores 
  5. Critical Issues Facing Auto Lenders – Mid-Year Update – Law Offices of Snell & Wilmer. (2026, June 11). https://www.swlaw.com/publication/critical-issues-facing-auto-lenders-mid-year-update/ 
  6. Statista. (2026, June 20). Monthly car loan rates in the U.S. 2014-2026. https://www.statista.com/statistics/290673/auto-loan-rates-usa/?srsltid=AfmBOop2jGiXJ7e4WxVm6rwuhGf9v8iXvwE-rXKGuRPzw3UTgLVsNkt8 

5Table 5

  1. Luthi, B. (2025, June 20). Average car loan interest rates by credit score. https://www.experian.com/blogs/ask-experian/average-car-loan-interest-rates-by-credit-score/ 
  2. Bradley, S. (2026, June 11). Average car loan interest rates by credit score. NerdWallet. https://www.nerdwallet.com/auto-loans/learn/average-car-loan-interest-rates-by-credit-score 
  3. Howard, B. (2026, April 2). Average auto loan interest rates by credit score in 2026. Bankrate. https://www.bankrate.com/loans/auto-loans/average-car-loan-interest-rates-by-credit-score/ 
  4. Toth, H. (2025, October 16). Average auto loan rates in 2025: New, used & credit scores. Certified AutoBrokers Inc. https://idrivecertified.com/blog/average-auto-loan-rates-in-2025-new-used–credit-scores 
  5. Critical Issues Facing Auto Lenders – Mid-Year Update – Law Offices of Snell & Wilmer. (2026, June 11). https://www.swlaw.com/publication/critical-issues-facing-auto-lenders-mid-year-update/ 
  6. Statista. (2026, June 20). Monthly car loan rates in the U.S. 2014-2026. https://www.statista.com/statistics/290673/auto-loan-rates-usa/?srsltid=AfmBOop2jGiXJ7e4WxVm6rwuhGf9v8iXvwE-rXKGuRPzw3UTgLVsNkt8 

6Table 6

  1. Luthi, B. (2025, June 20). Average car loan interest rates by credit score. https://www.experian.com/blogs/ask-experian/average-car-loan-interest-rates-by-credit-score/ 
  2. Bradley, S. (2026, June 11). Average car loan interest rates by credit score. NerdWallet. https://www.nerdwallet.com/auto-loans/learn/average-car-loan-interest-rates-by-credit-score 
  3. Howard, B. (2026, April 2). Average auto loan interest rates by credit score in 2026. Bankrate. https://www.bankrate.com/loans/auto-loans/average-car-loan-interest-rates-by-credit-score/ 
  4. Toth, H. (2025, October 16). Average auto loan rates in 2025: New, used & credit scores. Certified AutoBrokers Inc. https://idrivecertified.com/blog/average-auto-loan-rates-in-2025-new-used–credit-scores 
  5. Critical Issues Facing Auto Lenders – Mid-Year Update – Law Offices of Snell & Wilmer. (2026, June 11). https://www.swlaw.com/publication/critical-issues-facing-auto-lenders-mid-year-update/ 
  6. Statista. (2026, June 20). Monthly car loan rates in the U.S. 2014-2026. https://www.statista.com/statistics/290673/auto-loan-rates-usa/?srsltid=AfmBOop2jGiXJ7e4WxVm6rwuhGf9v8iXvwE-rXKGuRPzw3UTgLVsNkt8 

7Table 7

  1. Zabritski, M. (2026, March 5). Adapting to change: Subprime borrowers re-entered the market in Q4 2025. Experian Insights. https://www.experian.com/blogs/insights/adapting-to-change-subprime-borrowers-re-entered-the-market-in-q4-2025/ 
  2. LendingTree. (2026, March 23). Average car payment and auto loan statistics: 2026 | LendingTree. https://www.lendingtree.com/auto/debt-statistics/ 
  3. Gregory, J. (2026, May 7). DealerTrack Index signals looser auto credit despite dip in approval rates – Cox Automotive Inc. https://www.coxautoinc.com/insights/oct-2025-cai/ 
  4. Systems, E. (2025, November 13). Personal loan balances hit record high as borrowers maintain stability / Fresh Today / CUToday.info – CU Today. https://www.cutoday.info/Fresh-Today/Personal-Loan-Balances-Hit-Record-High-As-Borrowers-Maintain-Stability 
  5. Henry, J., & Maxin, R. (2026, June 1). Average Auto Loan Rates in June 2026 (J. Leonard & N. Parsons, Eds.). U.S. News And World Report. https://cars.usnews.com/cars-trucks/advice/average-auto-loan-interest-rates 
  6. Betterton, R. (2026, May 19). What’s the minimum credit score to buy a car? Bankrate. https://www.bankrate.com/loans/auto-loans/what-credit-score-do-you-need-to-buy-a-car/ 
  7. Equifax. (2026). Automotive Insights Report. In Equifax. https://assets.equifax.com/marketing/US/assets/auto-insights-report-april-2026.pdf 
  8. Clarkberg, J., Gardner, J., & Low, D. (2021). Data Point: Subprime auto loan outcomes by lender. In Consumer Financial Protection Bureau [Report]. https://files.consumerfinance.gov/f/documents/cfpb_subprime-auto_data-point_2021-09.pdf 

8Table 8

  1. Flores, Y. (2025, June 6). Minimum Credit Score Required to Buy a Car. Starling GMC. https://www.starling-gmc.com/minimum-credit-score-car-loan/ 
  2. Barroso, A., & Schwahn, L. (2026, June 12). What minimum credit score do you need to buy a car? NerdWallet. https://www.nerdwallet.com/finance/learn/credit-score-needed-to-buy-car 
  3. Reports, C. (2025, October 22). How your credit score affects auto loan interest Rates. Consumer Reports. https://www.consumerreports.org/money/car-financing/how-your-credit-score-affects-auto-loan-interest-rates-a9997593057/ 
  4. Zabritski, M. (2026, March 5). Adapting to change: Subprime borrowers re-entered the market in Q4 2025. Experian Insights. https://www.experian.com/blogs/insights/adapting-to-change-subprime-borrowers-re-entered-the-market-in-q4-2025/ 
  5. Hyundai, G. (n.d.). What credit score do car dealers use? | Granite Hyundai. https://www.granitehyundai.net/what-credit-score-do-car-dealers-use.htm 
  6. LendingTree. (2026, March 23). Average car payment and auto loan statistics: 2026 | LendingTree. https://www.lendingtree.com/auto/debt-statistics/ 
  7. Heaps, R. (2025, September 30). Credit score for car buying: terms and tips. Kelley Blue Book. https://www.kbb.com/car-advice/credit-score-car-buying-terms-tips/ 
  8. Betterton, R. (2026, May 19). What’s the minimum credit score to buy a car? Bankrate. https://www.bankrate.com/loans/auto-loans/what-credit-score-do-you-need-to-buy-a-car/ 
  9. Luthi, B. (2025, April 22). Used car loans and financing for 2025. https://www.experian.com/blogs/ask-experian/used-car-loans-and-financing/ 

9Table 9

  1. Zabritski, M. (2026, March 5). Adapting to change: Subprime borrowers re-entered the market in Q4 2025. Experian Insights. https://www.experian.com/blogs/insights/adapting-to-change-subprime-borrowers-re-entered-the-market-in-q4-2025/ 
  2. Equifax. (2026, April 1). Auto lending trends: growth, risk shifts, and what the latest data signals. Equifax. https://www.equifax.com/business/blog/-/insight/article/auto-lending-trends-growth-risk-shifts-and-what-the-latest-data-signals/ 
  3. Equifax. (2026, May 27). May Auto lending market Update: key trends and what the latest credit data reveals. Equifax. https://www.equifax.com/business/blog/-/insight/article/may-auto-lending-market-update-key-trends-and-what-the-latest-credit-data-reveals/ 
  4. Henry, J., & Maxin, R. (2026, June 1). Average Auto Loan Rates in June 2026 (J. Leonard & N. Parsons, Eds.). U.S. News And World Report. https://cars.usnews.com/cars-trucks/advice/average-auto-loan-interest-rates 
  5. Team, D. (2026, June 15). Auto loan delinquency Rates and trends. Defi SOLUTIONS. https://defisolutions.com/defi-insight/auto-loan-delinquency-rates-and-trends/ 
  6. Statista. (2026, June 20). Monthly car loan rates in the U.S. 2014-2026. https://www.statista.com/statistics/290673/auto-loan-rates-usa/?srsltid=AfmBOop2jGiXJ7e4WxVm6rwuhGf9v8iXvwE-rXKGuRPzw3UTgLVsNkt8 
  7. Intelligence, M. (2026, February 20). Auto Loan Market Size, Report & 2031 Share Analysis. Mordor Intelligence. https://www.mordorintelligence.com/industry-reports/auto-loan-market 
  8. Clements, J. (202 C.E., March 10). Experian: Subprime Auto Financing Share Rises to 15.31% in Q4 2025. Auto Success Online. https://www.autosuccessonline.com/experian-state-of-automotive-finance-market-report/ 
  9. Critical Issues Facing Auto Lenders – Mid-Year Update – Law Offices of Snell & Wilmer. (2026, June 11). https://www.swlaw.com/publication/critical-issues-facing-auto-lenders-mid-year-update/ 

10Figure 10

  1. Bank vs Credit Union Auto Loan: What’s smarter in 2026? (n.d.). https://www.lendbuzz.com/article/bank-vs-credit-union-auto-loan 
  2. DeNicola, L. (2024, October 29). Subprime Auto Loan: Guide & Rates. https://www.experian.com/blogs/ask-experian/subprime-auto-loan/ 
  3. Broadview. (2026, March 18). Best car interest rates 2026: Compare & save. https://www.broadviewfcu.com/blogs/best-car-interest-rates-compare/ 
  4. EZ Car Network of Dealerships | New & Used Cars | Lewistown MT. (2026, May 16). https://www.ez.car/guides/used-car-financing 

11Table 11

  1. Auto loan rates for new & used cars. (n.d.). Navy Federal Credit Union. https://www.navyfederal.org/loans-cards/auto-loans/auto-rates.html 
  2. Broadview. (2026, March 18). Best car interest rates 2026: Compare & save. https://www.broadviewfcu.com/blogs/best-car-interest-rates-compare/ 
  3. Marquit, M. (2026, June 5). Best Auto Loan Rates of June 2026. Wall Street Journal. https://www.wsj.com/buyside/personal-finance/auto-loans/best-auto-loan-rates 
  4. Quach, N. (2026, May 11). The best auto loans of 2026. AutoInsurance.com. https://www.autoinsurance.com/loans/best/ 
  5. Is a 828 credit score excellent? Loans, cards & rates explained. (2026, June 20). https://www.thecreditpeople.com/credit-score/is-a-828-credit-score-excellent-loans-cards-rates-explained 
  6. Hear from our editors: The best auto loan rates of 2026 | Credit Karma. (2025, December 22). https://www.creditkarma.com/auto/i/best-auto-loan-rates
  7. BCU Contact & Help Center – Home. (n.d.).  https://help.bcu.org/s/article/RateSheetforAutoLoanApprovals1
  8. Bank of America. (n.d.). Auto Loan Rates from Bank of America. https://www.bankofamerica.com/auto-loans/auto-loan-rates/

12Table 12

  1. TransUnion. (2018, August 21). Financial crisis – 10 years later: Consumer credit market on an upward curve. https://newsroom.transunion.com/financial-crisis–10-years-later-consumer-credit-market-on-an-upward-curve/ 
  2. Philadelphia, F. R. B. O. (2026, April 2). Record-high auto loan delinquency news headlines suggest growing consumer financial strain, but new analysis shows there may be more to. LinkedIn. https://www.linkedin.com/posts/philadelphiafed_do-recent-auto-loan-delinquency-rates-overstate-activity-7445456768337489920-LGkS 

13Table 13

  1. Metro, A. (2025, November 18). Credit Score Auto Loan Rates: 2025 APR Guide, New vs. Used. Certified AutoBrokers Inc. https://idrivecertified.com/blog/credit-score-auto-loan-rates 
  2. Is a 590 credit score fair? Loans, cards & rates explained. (n.d.). https://www.thecreditpeople.com/credit-score/is-a-590-credit-score-fair-loans-cards-rates-explained 
  3. Crace, M. (2024, June 3). Your credit score can directly affect how expensive your auto loan’s monthly payments will be. Rocket Loans. https://www.rocketloans.com/learn/personal-loan-basics/what-is-a-good-credit-score-to-buy-a-car 
  4. Harmon, A. (2022, June 7). What is a good credit score for a car loan? – Toyota Direct blog. https://www.toyotadirect.com/blogs/3084/bad-credit-car-dealer/what-is-a-good-credit-score-for-a-car-loan/ 

14Table 14

  1. Pino, I. (2025, November 12). Car loan delinquencies are surging. Here’s what to do if you’re falling behind. Yahoo Finance. https://finance.yahoo.com/personal-finance/banking/article/car-loan-delinquencies-surge-for-subprime-borrowers-191628715.html