Car Loan Rates

Estimate your car loan rate!

The car loan rate you pay depends on many factors. The calculator below will estimate your rate based on your state, credit score and much more!

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The car loan interest rate you pay depends on:

• Your credit score. A recent survey of car loan interest rates across the U.S. revealed that car loan rates for people with bad credit (590 and below FICO score) were more than twice as high as car loan rates for people with good credit (720 and above FICO score). That is, while the national average good credit car loan rate was 7.2%, the average bad credit car loan rate was 15.1%... a difference of 110%.

• The rate of interest in the economy at large. Car loan interest rates are cyclical and are tied in part to the rate of inflation. The difference in car loan rates between the top and bottom of an economic cycle may be several percentage points or 20-30%.

• The type of loan you are considering. When purchased from a dealer, new car loan rates may carry a 20-25% lower interest rate than used car loan rates. For example, a recent survey of rates for a large national car lender showed that its 36-month new car auto loan rate ran around 6.0% and its 36-month used car loan rate was around 7.3%. Why are used car loan rates higher than new car auto loan rates? Some lenders base their car loan rates at least in part on the value of the underlying collateral.

• Who you are purchasing the car from. Car loan rates vary based on who the seller is. A recent survey of used car loan rates for people with good credit showed that purchases from an licensed dealer were 7.3%. Buying the same car from a private party would incur a used car loan rate of 8.25%, a 13% increase.

• The loan term. In general, car loan interest rates increase with the length of the loan. A recent comparison of 36-month and 72-month car loan interest rates showed that the shorter term rates were 12% lower than rates on longer term auto loans.

• Lending conditions in your local market. Want to find the best car loan rates? Some sites give the impression that it is essential to check rates in your area. The reality is that car loan rates fluctuate less than 20% across the U.S. In fact, take out Hawaii and they only fluctuate 10% coast to coast.

Disclosure: We developed the content for SmartCarCredit™ while working with automotive industry clients. We hope you find it helpful in making informed decisions. While we believe the information to be accurate, we do not guarantee its accuracy.