: Credit unions typically offer lower rates than big banks. For example, 60-month new car loans averaged 5.75% at credit unions compared to 7.49% at banks in mid-2025 [11].
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
: Secure an offer from a bank or credit union before visiting a dealership to use as leverage in negotiations [19][24]. : Credit unions typically offer lower rates than big banks
AI responses may include mistakes. For financial advice, consult a professional. Learn more High-tier borrowers can find rates as low as
: Shorter terms (e.g., 36–48 months) usually come with lower interest rates but higher monthly payments [10][24].
Beyond your credit score, several variables determine the final cost of your loan: