What's a good APR for a car loan?

Written by Editorial Team | Last Updated: August 2026

A competitive annual percentage rate for an automobile loan varies significantly depending on whether you are financing a brand-new vehicle or a pre-owned model, alongside your personal credit profile. For buyers with pristine credit, promotional manufacturer financing offers can sometimes feature low rates ranging from zero to four percent on new cars. Standard market rates for well-qualified buyers generally hover between five and eight percent for new vehicles, while used car loans typically carry higher baseline interest rates due to accelerated asset depreciation risks.

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