In 2025, auto loan rates remain influenced by economic factors like inflation and Federal Reserve decisions, with averages hovering around 7% for new cars and higher for used vehicles. While rates have stabilized after recent cuts, borrowers with excellent credit can secure deals as low as 3-5%, including 0% financing on select models. This guide breaks down current averages, top lenders, special deals, and tips to help you find the best auto loan rates for your needs.
Average Auto Loan Rates in September 2025
Auto loan interest rates vary based on credit score, loan term, vehicle type (new or used), and lender. According to recent data, the overall average for a 60-month new car loan is 7.20%. For used cars, rates average 11.87%, ranging from 6.82% for top credit tiers to 21.58% for lower scores. Volume-weighted averages show 9.43% for new vehicles and 14.12% for used.
Here’s a breakdown by credit score and vehicle type (based on Q2 2025 data from LendingTree and Experian):
| Credit Score Range | New Car Average APR | Used Car Average APR |
| Excellent (750+) | 5.25% – 7.00% | 6.82% – 7.50% |
| Good (700-749) | 6.80% – 8.00% | 8.50% – 10.00% |
| Fair (650-699) | 9.00% – 11.00% | 11.00% – 13.00% |
| Poor (Below 650) | 12.00% – 15.00% | 14.12% – 22.00%+ |
These figures can fluctuate; always check your credit and prequalify for personalized rates.
Top Lenders Offering the Best Auto Loan Rates
Several lenders stand out for competitive rates in 2025, especially for borrowers with good credit. Credit unions like Navy Federal and PenFed often provide the lowest APRs, starting below 4%. Online marketplaces like myAutoLoan and LightStream are great for shopping multiple offers.
| Lender | Starting APR | Loan Terms | Min. Loan Amount | Best For | Key Features |
| PenFed Credit Union | 3.74% | 36-84 months | $500 | Military members, general borrowers | No fees, autopay discount, partners with TrueCar for car shopping. |
| Navy Federal Credit Union | 3.89% (new), 4.79% (used) | Up to 96 months | Varies | Military families | Excellent credit gets lowest rates; flexible terms up to 96 months. |
| LightStream | 6.49% | 24-84 months | $5,000 | Good credit, online loans | No fees, rate beat program, fast funding in all states. |
| myAutoLoan | 6.49% (good credit), 6.74% (fair) | 24-84 months | $8,000 | Fair credit borrowers | Online marketplace, autopay discount, prequalification. |
| Carputty | 4.33% | 48-72 months | $2,500-$25,000 | Used cars, online buying | High loan limits up to $250,000, fast approval. |
| Tenet | 5.99% | 36-84 months | $15,000 | Electric vehicles (EVs) | Includes home charger financing, fully online. |
| Auto Credit Express | Varies | 24-72 months | $5,000 | Low-income borrowers | Accepts cosigners, low min. income ($1,500/month). |
Rates assume excellent credit; actual offers depend on your profile. Prequalify with multiple lenders to compare without impacting your score.
Best 0% APR Financing Deals in 2025
For new car buyers, manufacturer incentives can drop rates to 0% on qualifying models, often EVs or popular SUVs. These deals are typically for borrowers with prime credit and may require shorter terms.
- 2025 Subaru Solterra: 0% for 72 months.
- 2025 Volkswagen ID.4: 0% for 72 months or $5,000 cash back.
- 2025 Chevrolet Equinox EV: 0% for 60 months.
- 2025 Nissan Rogue: 0% for 60 months + up to $1,750 bonus cash.
- 2025 Lexus RZ: 0% for up to 72 months.
- 2025 Lincoln Corsair Grand Touring: 0% for 60 months.
- 2025 GMC Sierra 1500: 0% financing (term unspecified).
- 2025 Chevrolet Silverado EV: 0% for 60 months.
- 2025 Nissan Ariya: 0% for 72 months + $2,000 bonus cash.
- 2025 Mitsubishi Outlander: 0% for 60 months (select states only).
These promotions change monthly—check dealer websites for eligibility.
Factors Affecting Auto Loan Rates
Several elements determine your rate:
- Credit Score: Higher scores (700+) unlock the lowest rates; poor credit can add 5-10% or more.
- Loan Term: Shorter terms (36-48 months) often have lower APRs than longer ones (72+ months).
- New vs. Used: New cars average lower rates (around 7%) than used (11-14%).
- Down Payment: Larger down payments reduce risk, potentially lowering your rate.
- Economic Conditions: Fed rate cuts in 2025 have helped stabilize auto loans, but inflation impacts remain.
Tips for Getting the Best Auto Loan Rates
To secure top deals:
- Check and Improve Your Credit: Review your score for free and pay down debt to boost it before applying.
- Shop Multiple Lenders: Use online tools to compare offers from banks, credit unions, and marketplaces.
- Consider Prequalification: Get rate estimates without a hard credit pull.
- Opt for Shorter Terms: If affordable, shorter loans save on interest despite higher monthly payments.
- Look for Discounts: Autopay (0.25-0.50% off) or loyalty programs can reduce rates.
- Buy New for Incentives: 0% deals are mostly on new models—pair with trade-ins for savings.
- Refinance Later: If rates drop further in 2025, refinance your existing loan.
By focusing on these strategies, you can minimize interest costs and make car ownership more affordable. Always calculate total loan costs using an online auto loan calculator before signing. For the latest rates, visit lender sites or consult a financial advisor.
