Car Buying Interest Rates May 2026

Used car loans consistently carry higher interest rates than new car loans, largely due to the increased risk of depreciation and mechanical failure associated with older collateral.

: Averages typically hover around 11% , though they can exceed 14% depending on the specific lender and sales-weighting. 1.2. Impact of Credit Scoring car buying interest rates

Average Car Loan Interest Rates by Credit Score - NerdWallet Used car loans consistently carry higher interest rates

The automotive financing sector has transitioned from a period of aggressive rate hikes to a more stable, albeit elevated, environment. As of late April 2026, lenders are offering a wide spectrum of rates depending on the asset class and the borrower's financial health. environment. As of late April 2026