Experian reports average Q2 2026 auto loan rates of 6.35% for new cars and 11.19% for used, highlighting the critical role of credit scores and lender shopping in securing affordable financing.
Experian is named as the source of the State of the Automotive Finance Market report, but the article does not discuss its financials or stock performance.
The article mentions FICO score, which is a product of Fair Isaac Corporation, but no company-specific news is provided.
New car loan interest rates averaged 6.35% in the second quarter of 2026, while used vehicle financing averaged 11.19%, according to Experian data. Borrowers with subprime credit face significantly higher costs, with deep subprime rates reaching up to 21.62% for used cars. Experts advise consumers to shop multiple lenders and improve credit scores to mitigate the impact of high interest rates on total loan costs.
Credit scores are a primary factor in underwriting; higher scores qualify for lower interest rates, while subprime scores can lead to rates exceeding 20% for used vehicles.
Experts recommend prequalifying with at least three different lenders, making a down payment of at least 20%, and improving your debt-to-income ratio before applying.