: Used cars generally carry higher interest rates—averaging nearly 5% more than new cars—due to their faster depreciation and higher risk for the lender [28][36].
Lenders use your credit score as the primary risk indicator. High-tier borrowers can find rates as low as at select institutions like PenFed Credit Union , while those with lower scores may face rates exceeding 20% [9][23]. Credit Score Range New Car Avg APR Used Car Avg APR Prime (661-780) Nonprime (601-660) Subprime (501-600) Deep Subprime (300-500) Data sourced from NerdWallet as of April 2026 [9]. Key Factors Influencing Your Rate auto loan rate
: Even a small increase in your credit score can save you thousands over the life of a loan. Reducing credit card balances and ensuring on-time payments are effective strategies [12][36]. Credit Score Range New Car Avg APR Used