Are you considering buying a new or used automobile this fall? If so, you're not alone. Fall is a popular season for purchasing cars, trucks, SUVs and vans, as many dealerships provide discounts and promotions to clear out older inventory and make space for new models. Plus, some automakers run special sales and cashback offers during Fall holidays like Black Friday and Veterans Day.
If you finance your automobile purchase, which about 80% of buyers in the U.S. do each year1, your credit score will be a key factor in determining your eligibility for an auto loan and the interest rate you'll receive.
Credit Score Tiers
Your credit score helps determine your annual percentage rate (APR) when borrowing to purchase an automobile. The APR represents the total yearly cost of the auto loan and includes the interest rate along with any additional charges, such as loan origination fees or closing costs.
While various credit scoring models are available, most banks and lenders rely on either the Fair Isaac Corporation (FICO®) model or the VantageScore® model when evaluating automobile loans. Both FICO® and VantageScore® use a scale from 300 to 850, with 850 being the highest possible credit score. There is no minimum credit score required to get an auto loan approved. However, borrowers with credit scores in the prime (661–780) or super-prime range (781–850) are more likely to qualify for an auto loan at a lower interest rate.
Average Auto Loan Interest Rate By Credit Score
A report from the consumer credit reporting company Experian® reveals insights into auto loan interest rates for the first quarter of 2026. The overall average interest rate for new auto loans was 6.39%, while the average rate for used auto loans was 11.43%.2 Below is a breakdown of the five credit tiers, with their corresponding score ranges in parentheses. Also included is the average annual percentage rate (APR) for new and used cars financed during the first quarter of 2026.
Super Prime (781–850)
Average APR, New Car: 4.55%, Average APR, Used Car: 6.30%3
Prime (661–780)
Average APR, New Car: 6.23%, Average APR, Used Car: 8.77%4
Near-Prime / Nonprime (601–660)
Average APR, New Car: 9.67%, Average APR, Used Car: 14.03%5
Subprime (501–600)
Average APR, New Car: 13.44%, Average APR, Used Car: 19.42%6
Deep Subprime (300–500)
Average APR, New Car: 16.01%, Average APR, Used Car: 21.77%7
Please be aware that these interest rates are derived from a research report and do not reflect the actual rate you may receive.
How To Improve Your Credit Score
It's always a good time to take control of your credit, especially when you are planning to make a major purchase in the near future, such as an automobile. While it takes time to boost your credit score, it can be done. Even minor improvements in your credit score can result in significant savings—amounting to hundreds or even thousands of dollars in interest.
Request a Copy of Your Credit Report: To check your credit, visit AnnualCreditReport.com, the official website authorized by federal law. From there, you can request your credit report from one of the three credit reporting agencies: Equifax®, Experian®, or TransUnion®. You are entitled to one free credit report each year.
Report Any Errors or Inaccuracies: If you identify any errors or inaccuracies in your credit report, such as incorrect personal information, an invalid or closed account, or late payments that were made on time, they might be negatively affecting your credit score. Gather copies of documents that support your claims and file a dispute with the credit reporting agency.
Reduce Your Credit Card Balances: When you apply for an auto loan, having excessive credit card debt can limit your chances of approval for the amount you wish to borrow. One effective strategy is to pay down high-interest credit cards. This reduces your overall debt load and can help improve your credit score.
Consolidate Debts: Credit card balances, personal loans, and school loans can add up quickly, and the interest payments on each can increase if you are making minimum monthly payments. Explore options to consolidate your debts to reduce your monthly payments and simplify your monthly bills.
Do Not Open New Accounts: Applying for a new credit card can lower your credit score and affect your creditworthiness with banks or lenders. Therefore, avoid opening new accounts and focus on reducing the balances on your existing cards.
Your Road Map to Success
In addition to checking your credit score and taking steps to improve it, there are several strategies to help you successfully navigate your auto purchase. First, determine your budget. Review your finances to calculate how much you can afford to pay each month. Don't forget to include additional costs, such as insurance and fuel. Use Ameris Bank's auto loan calculator to see estimated monthly payments based on the purchase price and various other variables.
Next, reach out to your bank or lender to get preapproved for an auto loan. This will give you a clearer idea of your budget and enhance your bargaining power at the dealership. It's important to understand that prequalification relies on self-reported information and may or may not involve a soft credit check, which does not affect your credit score. In contrast, pre-approval requires a hard credit inquiry, which can result in a slight, temporary decrease in your credit score.
Once you've chosen the new or used vehicle you want, it's time to negotiate the price. Start by researching its market value to make sure you're getting a fair deal. Remember that negotiating is a standard part of the car-buying process, so don't hesitate to ask for a lower price if it's justified.
The final step is to read all of the paperwork and financial documentation before signing to ensure the final cost and terms match what you agreed to. Then, enjoy your automobile!
If you want to walk into a dealership prepared to buy with approved financing, reach out to an Ameris Bank banker. We offer automotive loans for new and used cars, pickup trucks and SUVs, all featuring competitive fixed interest rates and flexible terms. You can apply for an auto loan in person by visiting your nearest Ameris Bank branch.
1 https://www.nada.org/nada/issues/vehicle-financing
2, 3, 4, 5, 6, 7 https://www.experian.com/blogs/ask-experian/auto-loan-rates-financing/
