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Current car loan interest rates

Mar 24, 2023

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Car loan interest rates change frequently and impact how much you’re going to pay each month. So it’s important to track them when comparing auto loan rates. Bankrate surveys top banks across U.S. markets and crunches the numbers to find average interest rates for common loan terms. Use the below table, which updates weekly, to help you know the best time to buy a new or used car. 

Current auto loan interest rates

Dates 60-month new car 48-month new car 48-month used car 36-month used car
3/22/2023 6.49% 6.45% 7.03% 6.74%
3/15/2023 6.48% 6.44% 7.02% 6.73%
3/8/2023 6.30% 6.27% 6.90% 6.58%
3/1/2023 6.30% 6.27% 6.90% 6.58%
2/22/2023 6.27% 6.25% 6.88% 6.55%
2/15/2023 6.27% 6.25% 6.88% 6.54%
2/8/2023 6.26% 6.23% 6.86% 6.52%
2/1/2023 6.19% 6.16% 6.83% 6.49%
1/25/2023 6.18% 6.17% 6.83% 6.49%
1/18/2023 6.17% 6.16% 6.8% 6.47%
1/11/2023 6.17% 6.15% 6.8% 6.47%
1/4/2023 6.26% 6.25% 7.03% 6.66%
12/28/2022 6.13% 6.12% 6.77% 6.44%

2023 outlook for auto loan interest rates 

2022 proved to be a complicated year in all facets of American finance. And now, in 2023, it’s clear the automotive industry will not come out unscathed. Decisions made by the Federal Reserve and the remaining supply chain issues all play a part in how much it's going to cost to finance your next car.    

The increased Fed rate, sitting at 4.75 percent to 5 percent following the March meeting, will indirectly affect your rates. So even as sky-high vehicle prices have fallen 4 percent since its peak this past summer, the increase in interest rates will still result in a more expensive experience overall. 

But while the federal funds rate influences lender’s rates, it is not the only consideration. Lenders will also look at your credit score, amount financed and your loan term. With all of this in mind, consider approaching your next loan with extra care. Be sure to apply for preapproval and shop multiple lenders.

What’s the difference between new and used car interest rates?

Loans for newer cars tend to have lower interest rates than those for used cars. Lenders see newer cars as less of a risk — they’re less likely to break down and lenders can identify exactly how much they’ll depreciate over time. Newer cars also have more predictable resale value than older cars, and that predictability results in a lower interest rate.

Average interest rate by loan type 

As an example, here are the interest rates for new and used cars as of Dec. 14, 2022.

Term New Used
36 months 6.06% 6.43%
48 months 6.09% 6.74%
60 months 6.1% 7.86%

Auto loan rates by credit score

Credit scores of 740 or higher — what’s considered very good — will help you qualify for the lowest auto loan interest rates. But even if your credit score is lower, you may still qualify for a decent rate.   

Here’s a breakdown of average interest rates by credit score, according to Experian’s 2022 third quarter data.
Credit score New cars Used cars
781 to 850 (super prime) 3.84% 3.69%
661 to 780 (prime) 4.9% 5.47%
601 to 660 (nonprime) 7.25% 9.81%
501 to 600 (subprime) 10.11% 15.86%
300 to 500 (deep subprime) 12.93% 19.81%

Ready to compare rates from top lenders?

Editorial Disclosure
All reviews are prepared by staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.