What is the average auto loan interest rate?

As of 2026, average auto loan rates range from 5% to 8% for borrowers with good credit (700+). Borrowers with fair credit (600–699) typically see rates between 9% and 14%, while subprime borrowers may face rates of 15% or higher.

How long should my auto loan term be?

Most auto loans range from 36 to 72 months. A shorter term means higher monthly payments but less interest paid overall. A 60-month loan is the most common balance between affordable payments and total cost.

Can I refinance my auto loan to get a lower rate?

Yes. Auto loan refinancing is a smart move if your credit score has improved since you took out the original loan or if interest rates have dropped. Many lenders offer refinancing with no fees, and you could save hundreds or thousands over the life of the loan.

Best Auto Loan Rates of 2026

Q: What credit score do I need for an auto loan?

Most lenders require a minimum credit score of 580–620 for auto loan approval. However, borrowers with scores of 700 or higher typically qualify for the best interest rates. Even with bad credit, some lenders specialize in subprime auto loans.

Q: Should I get pre-approved for an auto loan before visiting a dealership?

Absolutely. Getting pre-approved gives you a clear budget, a baseline interest rate to compare against the dealer's offer, and stronger negotiating power. Pre-approval from a bank or credit union typically takes minutes online.

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Best Auto Loan Lenders of 2026

Rates updated March 2026 · WiseIQ Editorial Team

Capital One Auto Navigator

Best Overall

Capital One · Pre-qualification available

New Car APR

From 4.99%

Used Car APR

From 6.99%

Min. Credit Score

500

Loan Amount

$4K–$75K

Soft Pull Pre-qual

Yes

Refinance

Yes

Why we recommend it: Pre-qualify with a soft credit pull (no score impact). Works with a network of 12,000+ dealers. Accepts 500+ credit scores. Best for shopping at dealerships.

Last reviewed: April 2026

Pre-Qualify — Capital One Auto Navigator →

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myAutoloan

Best Rate Shopping

Compare up to 4 lenders at once

New Car APR

From 4.74%

Used Car APR

From 5.99%

Min. Credit Score

575

Loan Amount

$8K–$100K

Lenders

Up to 4 offers

Refinance

Yes

Why we recommend it: One application, up to 4 competing loan offers. Best for finding the lowest rate. Accepts 575+ credit scores with competitive rates for all credit tiers.

Last reviewed: April 2026

Compare Auto Loan Rates — myAutoloan →

AutoPay

Best for Refinance

Auto loan refinancing specialist

Refinance APR

From 4.67%

Min. Credit Score

600

Loan Amount

$2.5K–$100K

Avg. Savings

$100+/month

Soft Pull

Yes

New Car Loans

Yes

Why we recommend it: Specializes in auto loan refinancing. If you have an existing auto loan at a high rate, AutoPay can help you refinance and save $100+/month. Soft pull pre-qualification available.

Last reviewed: April 2026

Refinance Your Auto Loan — AutoPay →

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

What credit score do I need for an auto loan?

Most lenders accept 580+ credit scores for auto loans. Capital One Auto Navigator accepts 500+. The higher your score, the lower your rate. Borrowers with 720+ credit typically receive the best rates (under 6%).

What is the average auto loan rate in 2026?

As of March 2026, the average new car loan rate is 5.27% and the average used car loan rate is 7.66% according to Experian. Rates vary significantly by credit score — excellent credit borrowers may see rates under 5%, while subprime borrowers may see 15%+.

Should I get pre-approved for an auto loan before visiting a dealership?

Yes. Getting pre-approved before visiting a dealership gives you negotiating power, a rate benchmark to compare against dealer financing, and prevents dealers from marking up your rate. Use Capital One Auto Navigator or myAutoloan for pre-approval.

When should I refinance my auto loan?

Consider refinancing if: your credit score has improved since you got your original loan, interest rates have dropped, or you got dealer financing at a high rate. AutoPay customers save an average of $100+/month by refinancing.

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Best Auto Loan Rates of 2026

Best Auto Loan Lenders of 2026

Capital One Auto Navigator

myAutoloan

AutoPay

Frequently Asked Questions

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