NEW YORK–A new analysis aims to offer consumers and credit union members insights into just how their credit scores affect car loan rates and how those rates, in turn, affect the overall price of a vehicle.
Noting that new car loans had an average interest rate under 7%, while used car loan rates averaged nearly just under 11.50% in the third quarter of 2025, Bankrate is urging consumers to not just shop around for the best price on a car, but to also understand the ways an improved credit score can also pay off.
Your credit score plays a significant role in determining your interest rate, but other factors such as the lender, amount borrowed, length of the loan and economic conditions also play a role.
More precisely, Bankrate said the average auto loan interest rate for new cars in the third quarter of 2025 was 6.56%, while the average used car loan interest rate was 11.40%, according to Experian’s State of the Automotive Finance Market report.
“There isn’t a significant difference between a superprime borrower and a prime borrower, but rates increase significantly if you fall outside of the prime range,” Bankrate said.
Below are two charts it produced to illustrate for consumers just what a difference a loan rate can make.
