What's the Average Interest Rate on a Car Loan

Wed, 29 Apr 2026 15:47:40 +0000

**What’s the Average Interest Rate on a Car Loan – and Why It Matters in 2025** Curious to know what a typical car loan payment looks like in today’s financial environment? The average interest rate on a car loan currently hovers around 6% to 7%, though rates fluctuate based on creditworthiness, term length, carrier, and broader economic conditions. With rising inflation and shifting central bank policies, understanding this key number helps Americans plan smarter vehicle financing. This query isn’t just a passing search—it’s part of a growing interest among budget-conscious buyers seeking clarity amid changing credit markets. As cost-of-living pressures persist, knowing the baseline rates empowers informed decisions, whether refinancing an existing loan or qualifying for a new one. ### How the Average Interest Rate on a Car Loan Is Set