Best Car Loan Rates in 2025
Find the best auto loan rates by credit score and learn how to secure the lowest APR for your next car purchase.
Current Average Auto Loan Rates (2025)
| Credit Score Range | New Car APR | Used Car APR |
|---|---|---|
| Excellent (760+) | 3.0% – 5.0% | 3.8% – 5.5% |
| Good (700–759) | 5.0% – 7.0% | 5.8% – 7.5% |
| Fair (640–699) | 7.0% – 10.5% | 7.8% – 11.5% |
| Poor (below 640) | 10.5% – 15%+ | 12% – 18%+ |
Factors That Affect Your Rate
Credit Score
Biggest factor in determining your rate
Loan Term
Shorter loans (36–48 months) = lower rates
Down Payment
Larger down payment = less risk for lenders
Car Type
New cars usually qualify for better rates
How to Get the Best Rate
Check Your Credit Score
Use free tools like Credit Karma or Experian
Get Pre-Approved
Know your rate before visiting the dealership
Compare Multiple Lenders
Credit unions, banks, and online lenders
Consider a Co-Signer
If your credit is borderline
Negotiate Everything
Rates, terms, and fees are often flexible
💡 Bottom Line
Even small improvements in your credit score or shopping around can save thousands of dollars over the life of your loan. Use our Car Loan Calculator to see exactly how different APRs affect your monthly payment.
Frequently Asked Questions
What credit score is needed for the best car loan rates?
A credit score of 760 or higher typically qualifies for the best auto loan rates. However, you can still get competitive rates with scores in the 700-759 range.
Should I get pre-approved before car shopping?
Yes! Getting pre-approved gives you negotiating power and helps you understand your budget. It also prevents dealers from marking up your interest rate.
About AFC Team
AFC Team provides educational content about auto financing. Our calculators and guides are for informational purposes only and should not be considered financial advice. Always consult with qualified financial professionals for important financial decisions.