Average new and used car loan APR by FICO credit-score tier — see how much your score changes the rate. ✓ Editorial (Experian-style tiers)
| Credit tier | FICO score | New car APR | Used car APR |
|---|---|---|---|
| Superprime | 781–850 | 5.2% | 7.0% |
| Prime | 661–780 | 6.7% | 9.1% |
| Nonprime | 601–660 | 9.6% | 14.1% |
| Subprime | 501–600 | 13.0% | 18.9% |
| Deep subprime | 300–500 | 15.4% | 21.6% |
Your credit score is the single biggest factor in the interest rate you're offered on a car loan. Borrowers with superprime credit (781+) often qualify for APRs around 5% on a new car, while subprime borrowers (below 600) can pay 13–22% — a gap of more than 10 percentage points. Used-car loans carry higher rates than new-car loans at every tier because used vehicles are seen as higher risk.
That difference is huge over the life of a loan: on a typical five-year loan, moving from subprime to prime can save thousands of dollars in interest. Before you shop, check your score, get pre-approved from a bank or credit union, and compare offers. Estimate your payment for any rate with our auto loan calculator and car affordability calculator.
Raise your credit score, put more money down, choose a shorter term, and buy new rather than used if the rate gap is large. These are US editorial averages based on Experian-style credit tiers; actual offers vary by lender, vehicle and region.
Rate tables by credit band show the spread but not its consequence, and the consequence is the point. On a $30,000 loan over 60 months, the difference between roughly 6% and roughly 12% is about $87 a month and roughly $5,240 across the term — which is to say a credit score is worth more than most negotiations over the sticker price.
Two structural details move the number as much as the tier does. New-car rates are consistently lower than used-car rates for the same borrower, because the collateral is worth more and more predictably. And term length works against you twice: a longer loan carries a higher rate and applies it for longer, so stretching from 60 to 84 months lowers the payment while raising total interest substantially.
The rate you are quoted is also not fixed by the table. Dealer-arranged financing may include a markup over the rate the lender approved, so a pre-approval from a bank or credit union is useful less as a source of funds than as a number to negotiate against.