Auto Loan Rates in Minnesota 2026 — Best Rates &

Navigating the auto loan landscape in Minnesota requires understanding both national trends and state-specific nuances. From competitive interest rates offered by local credit unions to the impact of Minnesota's sales tax and registration fees, securing the best financing for your vehicle involves careful consideration. WiseIQ provides comprehensive insights into current auto loan rates, top lenders, and essential financial data to help you make an informed decision for your next car purchase in the North Star State.

WiseIQ Expert Tip

Get pre-approved for an auto loan before visiting a dealership. Pre-approval gives you negotiating power and protects you from dealer financing markups that can add $1,000–$3,000 to your total cost.

Average Used Car APR

~5.24%

Average Credit Score

742

Minnesota Financial Snapshot

Auto Loans in Minnesota: What You Need to Know

Minnesota, known as the Land of 10,000 Lakes, has a population of 5.7M with a median household income of approximately $77,000. The current unemployment rate stands at 2.8%, which lenders consider when evaluating applications from Minnesota residents.

5.7M

Population

$77,000

Median Income

2.8%

Unemployment

Major financial hub: Minneapolis is the primary financial center for Minnesota residents, with access to both national and regional lenders.

Median Household Income

$89,062

Average Credit Score

742

Auto Sales Tax

6.875%

Top Auto Loan Lenders in Minnesota

APFAffinity Plus Federal Credit Union

Local Credit Union

APR: 4.74% - 5.74%

Key Benefit: Competitive rates for new and used vehicles with flexible terms.

Low rates for well-qualified borrowers
Terms up to 84 months available
Financing up to 125% of vehicle value

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RCURoyal Credit Union

Regional Credit Union

APR: 4.54% - 6.99%

Key Benefit: Excellent rates for newer vehicles and a wide range of terms.

Very competitive rates for 2023 & newer models
Flexible terms to fit various budgets
Fast loan decisions

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MCUMinnco Credit Union

Local Credit Union

APR: ~4.49% - 4.74%

Key Benefit: Strong local presence with personalized service and good rates.

Competitive rates for various terms
Community-focused lending
Personalized member service

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BCUBlaze Credit Union

Local Credit Union

APR: ~4.49%

Key Benefit: Quick loan decisions and competitive rates for new and used vehicles.

Answers within 2 business hours
Minimum amount financed is $5,000
Other discounts and offers may apply

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MFMagnifi Financial

Local Credit Union

APR: 3.79% - 6.99%

Key Benefit: Diverse rate options based on vehicle year, offering flexibility.

Rates as low as 3.79% for newer vehicles
Flexible terms available
Local Minnesota lender

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Minnesota Auto Loan Rates Comparison

Rates verified May 2026 · Updated weekly

Lender	Vehicle Type/Year	Term (Months)	APR (as low as)	Est. Monthly Payment per $1,000
Affinity Plus FCU	New Auto (2025-2026)	36	4.74%	$29.85
Affinity Plus FCU	New Auto (2025-2026)	60	4.99%	$18.87
Affinity Plus FCU	Used Auto (2020-2025)	48	4.74%	$22.91
Royal Credit Union	Newer Vehicle (2023+)	36	4.94%	$29.94
Royal Credit Union	Newer Vehicle (2023+)	75	5.84%	$15.95
Royal Credit Union	Used Vehicle (2016-2022)	48	5.99%	$23.41
Minnco Credit Union	New/Used Auto	48	4.49%	$22.80
Magnifi Financial	Newer Vehicle (2022+)	36	3.79%	$29.48

How to Choose the Best Auto Loan in Minnesota

1. Compare Offers from Multiple Lenders

Don't settle for the first offer you receive. Shop around and compare rates from banks, credit unions, and online lenders. Credit unions often provide highly competitive rates to their members.

2. Understand the Impact of Your Credit Score

A higher credit score typically qualifies you for lower interest rates. In Minnesota, the average credit score is 742, which is considered good. If your score is lower, consider improving it before applying or explore options for bad credit auto loans.

3. Factor in State-Specific Costs

Remember to account for Minnesota's 6.875% auto sales tax and varying registration fees based on your vehicle's value and age. These costs can significantly impact your total vehicle expense.

4. Consider Loan Term and Monthly Payments

While longer loan terms can lead to lower monthly payments, they often result in paying more interest over the life of the loan. Balance your budget with the total cost of the loan to find the right term for you.

WiseIQ Editorial Team

Reviewed by Certified Financial Planners & Industry Experts

Our editorial team consists of financial writers, CFPs, and former banking professionals dedicated to providing accurate, unbiased financial guidance. All content is fact-checked and updated regularly. Learn about our editorial standards →

Frequently Asked Questions About Auto Loans in Minnesota

What is the average auto loan interest rate in Minnesota?

Average auto loan interest rates in Minnesota can vary based on factors like credit score, loan term, and whether the vehicle is new or used. Generally, new car APRs can range from 4.5% to 5.5%, while used car APRs might be slightly higher, from 5% to 7%. Credit unions often offer some of the most competitive rates.

How does my credit score affect my auto loan rate in Minnesota?

Your credit score is a significant factor in determining your auto loan interest rate. With Minnesota's average credit score being around 742, borrowers with excellent credit (720+) can expect to qualify for the lowest rates. A lower credit score may result in a higher APR, as lenders perceive a greater risk.

What are the auto sales tax and registration fees in Minnesota?

Minnesota has a state sales tax of 6.875% on vehicle purchases, effective July 1, 2023. Vehicle registration fees are calculated based on the vehicle's value and age, with newer and more expensive vehicles incurring higher initial fees. There's also a title fee, which was recently increased to $164.50.

Can I get an auto loan with bad credit in Minnesota?

Yes, it is possible to get an auto loan with bad credit in Minnesota, though you may face higher interest rates. Some lenders specialize in bad credit auto loans, and credit unions may also offer more flexible options. It's advisable to compare offers and understand all terms before committing.

Should I get a new or used car loan in Minnesota?

The choice between a new or used car loan depends on your budget and needs. New car loans typically have lower interest rates but higher principal amounts. Used car loans might have slightly higher rates but a lower overall vehicle cost. Consider the total cost of ownership, including depreciation, insurance, and maintenance, for both options.

Auto Loan Rates in Minnesota

Average Used Car APR

Average Credit Score

Minnesota Financial Snapshot

Auto Loans in Minnesota: What You Need to Know

Median Household Income

Average Credit Score

Auto Sales Tax

Top Auto Loan Lenders in Minnesota

APFAffinity Plus Federal Credit Union

RCURoyal Credit Union

MCUMinnco Credit Union

BCUBlaze Credit Union

MFMagnifi Financial

Minnesota Auto Loan Rates Comparison

How to Choose the Best Auto Loan in Minnesota

1. Compare Offers from Multiple Lenders

2. Understand the Impact of Your Credit Score

3. Factor in State-Specific Costs

4. Consider Loan Term and Monthly Payments

Frequently Asked Questions About Auto Loans in Minnesota

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