Getting a car loan or auto loan can help you spread the cost of a new or used car into manageable monthly payments. If you’re wondering how much a car loan will cost you in interest based on your credit score, we’ve put together a handy car loan calculator to help you find out.
This auto loan tool takes into account your credit score, current interest rates, and the term length of the loan to determine how much you’ll pay per month and in interest.
including estimated total state taxes of:
total loan and interest paid:
|300-500 Deep Subprime
|781-850 Super Prime
Disclaimer: The figures entered on the input page of this calculator, and the results provided, are for illustrative purposes only. The calculator presented does not reflect the view of the Issuing Banks. This calculator is not intended to offer any tax, legal or financial advice and does not assure the availability of, or your eligibility for, any specific product offered by any financial institution. The terms and conditions of any specific product offered by a financial institution will differ and may affect the results of the calculator. Please consult with qualified professionals to discuss your situation.
The credit score band interest rates (for new and used cars) are taken from Experian rates, State of the Automotive Finance Market - Q1 2023. Current rates may be higher or lower.
Car Loan Interest Rates for Super Prime Credit Score (781 - 850)
If your credit score is between 781 and 850, you’re classed as having Super Prime credit. 850 is the highest possible credit score on the VantageScore and FICO rating systems. People with Super Prime credit scores are likely to be offered the lowest interest rates on a car loan, as lenders will see them as very financially responsible. This means if your score falls within this range, you’ll pay less overall than someone with a lower credit score.
The current average APR rate for a person with a 781-850 credit score when buying a new car is 4.75% and 5.99 when buying a used car.
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Car Loan Interest Rates for Prime Credit Scores (661 - 780)
A credit score between 661 and 780 is considered Prime. This is where 25% of borrowers sit when it comes to credit rating, the highest proportion across the different credit score ranges. If your rating comes within this range, you shouldn’t have any problems getting a car loan with a lower interest rate. A score in this range indicates that you’re financially responsible when it comes to managing your credit.
Average APR rates for someone with a credit score of 661-780 are 5.82% for a new car, or 7.83% if you’re buying a used car.
Car Loan Interest Rates for Nonprime Credit Scores (601 - 660)
If your credit score is between 601 and 660, this is classed as Nonprime. Lenders will see you as a low-risk borrower so you should be able to get a lower interest rate on an auto loan if you’re looking for a new or used car.
The latest average APR rates for a new car is 8.12%, and for a used car are 12.08% if you have a Nonprime credit rating. These can vary depending on the length of the loan term you choose.
Car Loan Interest Rates for Fair Credit Scores (501 - 600)
A credit score between 501 and 600 is classed as Subprime. If your credit score falls within this range, you might find it more difficult to get a car loan with a lower interest rate. You don’t have bad credit, but you don’t have great credit either, so some lenders may see you as more of a risky borrower compared to someone with good credit or above.
The average APR for someone with a 501-600 credit score is currently 10.79% for a new car, and 17.46% for a used car.
Car Loan Interest Rates for Deep Subprime Credit Scores (300 - 500)
If your credit score is between 300-500, this is classed as Deep Subprime and would make it the most difficult for you to be accepted for a car loan.
If you have a Deep Subprime credit score, it might be because you have missed previous payments or defaulted on a loan in the past. This would make a lender see you as a higher-risk borrower and potentially not give you a loan, or charge you more interest if you do get a loan.
For someone with a Deep Subprime credit score, the average APR on a loan for a new car is 13.42%, and for a used car it’s 20.62%.
As you can see, the lower the credit score, the higher the interest rate you’ll pay on a car loan. If you want to see how much interest you could pay over different loan terms with bad credit, check out our auto loan interest calculator to get a detailed summary.
The main calculation for the loan payment amounts is the amortized loan payment formula.
The sales tax was taken from https://worldpopulationreview.com/state-rankings/sales-tax-by-state and combines the average local tax with the state sales tax rate for each state.
The credit score band interest rates (for new and used cars) are taken from Experian. Data was accessed on 12th June 2023 and is updated periodically.
The loan term can also affect the interest rate. Loan terms below 60 months have no additional rate but loan terms of 60 months add 0.5%, 72 months adds 1% and 84 months adds 1.5%. This logic was mirrored from the SCEFCU Calculator which had this data available.