New Car Loan APR by Credit Score (Q1 2026 Rates)

New car APR averages by FICO band

• 781+ → 5.2% • 661–780 → 6.8% • 601–660 → 9.6% • 501–600 → 13.2% • Below 500 → 15.8%+

What drives the rate above your tier

Inside each tier, your specific rate depends on: down-payment percentage, loan term length (longer = higher), debt-to-income ratio, and prior auto-loan tradeline history. A clean 12-month prior auto loan can drop your rate by 0.5–1.0 points.

The pre-approval play

Walk into the dealer with pre-approvals from 2–3 outside lenders. If the dealer offers financing, ask them to beat it. The dealer's F&I office is incentivized to write loans — they'll often shave 0.5–1.5 points off their first quote to keep your business.

Term length math

60 months at 6.5% on $32k = $626/mo, $5,558 total interest. 72 months at 6.7% = $545/mo, $7,225 total interest. 84 months at 7.1% = $487/mo, $8,888 total interest. Each year of extension costs roughly $1,500–$1,700 in additional interest.

Frequently asked questions

Can I get a new car loan with a 580 FICO?

Yes — Capital One (540+), Westlake Financial (500+), and some local credit unions accept subprime. Expect APRs of 13–18% and required down payments of 15–25%.

Is dealer financing always more expensive?

On average, yes — dealers mark up wholesale APRs by 1–2 percentage points (the 'dealer reserve'). But when manufacturers run subvented programs (factory rate buy-downs), dealer financing can be cheaper than any outside lender.