Average Auto Loan Rates in 2026: What to Expect
Understanding where auto loan rates stand in 2026 helps you know whether your current rate is competitive — or whether refinancing could save you money. Here's the current landscape.
Average New Car Loan Rates (2026)
- Excellent credit (720+): 5.0%–6.5% APR
- Good credit (650–719): 6.5%–8.5% APR
- Fair credit (580–649): 10%–14% APR
- Subprime (below 580): 14%–20%+ APR
Average Used Car Loan Rates (2026)
Used car rates run 1–2% higher than new car rates at each credit tier:
- Excellent: 6.0%–7.5%
- Good: 7.5%–10%
- Fair: 11%–16%
- Subprime: 16%–24%+
Auto Refinance Rates vs. Purchase Rates
Refinance rates are generally similar to used car rates for the same credit tier. However, if your credit has improved since purchase, your refinance rate could be substantially lower than what you're paying now — even if market rates haven't dropped.
See our detailed refinance rates by credit score guide.
What's Driving Rates in 2026?
- Federal Reserve policy: The Fed's rate decisions ripple through auto lending within weeks
- Lender competition: Online lenders and credit unions are pushing rates lower in competitive segments
- Used car prices: Stabilizing after post-pandemic spikes, improving LTV ratios for borrowers
- Delinquency rates: Rising auto loan delinquencies are making subprime rates higher, but prime borrowers are unaffected
How to Know If Your Rate Is Too High
Compare your current APR to the averages above for your credit tier. If you're paying 2%+ above the average for your score range, refinancing almost certainly saves you money.
Don't know your exact rate? Check your most recent loan statement — the APR is required to be disclosed.
Compare your rate against what you'd qualify for today
Check your refinance match →