Summary: A review of the best auto loan rates for new, used & used cars. refinanced vehicles based on credit scores from 800 to 809.
congratulations! You have reached the highest credit score level and are eligible for the best auto loan deals available. your credit score of 800 to 809 is in the “super prime” range (781-850). that qualifies you for the lowest interest rates, as well as a wide range of promotions and incentives.
but be careful. Just because you’re qualified for the best rates doesn’t mean you’ll automatically get them. In fact, auto loan studies have found that many people with excellent credit end up paying higher rates than necessary.
Some borrowers with super prime credit scores (720 or higher) received loans with a 0 percent APR. others with similar scores obtained loans with APRs above 25 percent.
To get the rates you’ve earned, you’ll need to shop carefully, compare multiple loan offers, and be mindful of your own interests.
Your credit isn’t the only factor affecting your interest rate. You’ll need to decide whether to finance through the auto dealer, your local bank or credit union, or an online lender. your down payment and the term of your loan also make a difference.
Let’s take a closer look at auto loan rates for borrowers with credit scores between 800 and 809.
disclaimer: “credit score” refers to the fico score in this article. if it has a different score (i.e., an advantage score), it is probably not the same as your fico. for example, a vantagescore of 645 could be equal to any fico score… 643, 644, 645? who knows? you can get your fico score here.
auto loan rates for a new car with a credit score of 800 to 809
The average interest rate for a new car loan with a credit score of 800 to 809 is 2.40%.
Most dealers will advertise many incentives to buy a new vehicle, such as cash rebates, low interest rates, or special lease deals. Buying a new car will generally have much better interest rates than buying a used vehicle.
With a credit score of 800-809, you’ll qualify for all of these offers: When premium buyers roll in, dealers roll out the red carpet. you may want to try several dealers and see who makes the best offer.
☝️ remember that the rates quoted are averages. you can get different offers from different lenders. be sure to shop for the best rates rather than go for the option with the best advertising.
average auto loan terms for a new car
This is what you can realistically expect to get based on national averages.
find the best new car loan rates for near prime credit
With a credit score of 800-809, you’ll have every possible financing option. you’ll still need to review those offers and select the one that best suits your needs.
💡 The easiest way to get offers from multiple lenders is to use an auto loan comparison service. these services can usually provide you with multiple offers in a matter of minutes.
auto loan rates for a used car with a credit score of 800 to 809
many people wonder what is a good interest rate on a used car.
We see amazing deals online and on TV for new car loan rates, but we rarely see used car rates advertised. In general, borrowers will pay a higher interest rate on a used car loan.
With a credit score of 800 to 809, you should qualify for lenders’ best APR offers.
The average rate for a used car loan in the 800-809 credit score range is 3.71% (52% higher than the average rate for a new car).
Rates are higher for used cars because their value is lower. If the lender has to repossess your car, it can be difficult for them to sell it for enough to cover your balance. that means more risk for the lender. lenders charge higher rates when your risk increases.
Even with higher interest rates, used cars can be a good deal, simply because the sticker price is often much lower than the price of a used car.
⚠️ Be careful!Buying a used car has its risks. that’s why you want to always check the vehicle’s history. You can run a vehicle history report on sites like CarFax using the Vehicle Identification Number (VIN). If the dealer or seller won’t give you the vin, consider this a major red flag and move on to another vehicle.
average auto loan terms for a used car
This is the rate you can expect to get based on national averages.
You can see the impact of higher rates. The difference, of course, is that the average sales price of a new car in the United States is $39,960, while the average price of a used car is $22,000. that’s a big difference!
800-809 credit score auto refinance rates
You may qualify to refinance with a credit score of 800-809!
If you had a lower credit score when you got your car loan or you financed your car through a dealer and didn’t get a great deal, you could save money by refinancing.
Refinancing can lower your monthly payment and put that extra interest savings right into your pocket.
If you refinance into a longer-term loan, you could significantly lower your monthly payment. you’ll pay more in interest and you may end up owing more than your car is worth.
If you’re thinking of refinancing, check your loan agreement first. Some loans have prepayment penalties that make refinancing less desirable.
average auto refinance rates
Refinancing rates are typically the same as rates on a loan taken at the time of sale, so the figures quoted above will apply.
factors that affect your car loan rate
Multiple factors play a role in determining a good auto rate for new, used and refinanced loans. Here are five things that can make a big difference in the auto loan rate you’re offered.
1. your credit score
auto loans are secured: your vehicle serves as collateral for the loan. if you don’t pay, the lender can repossess the car. That makes your loan less risky than an unsecured loan, so the interest rates are lower than most unsecured loans.
Your credit score has a big impact on the interest rate you’re offered and the cost of your loan. In the table below, you can see the average interest rates for new and used cars by credit score to see how much of an effect it has.
Average auto loan rates by credit score (Q2 2021)
Actual interest rates are based on many factors, including state, down payment, income and more. source: experian: state of the automotive financial market q1 2022
how your credit score affects your monthly payment
Here’s an example to illustrate the difference your credit score makes in determining your monthly payment.
As you can see, your credit score has a big impact on the interest rate you’re offered and the cost of your loan. With a score of 800 to 809, you’re in the best credit score range for auto loans and will pay the lowest interest rates available.
2. loan term
For many people, the size of their monthly payments is the key to affordability. Loan term has a bigger impact on monthly payments than small differences in your credit score.
Let’s look at how loan terms affect monthly payments for different credit scores in our target range. Let’s use the same example above to compare the effect of loan term versus a small credit score change on your car loan.
👉 Long-term auto loans provide a lower monthly payment, but they have real drawbacks. You’ll pay significantly more total interest, and you may owe more than your car is worth for much of the term of your loan. Take a look at the issues surrounding long-term auto loans before you decide!
try it yourself
Use our auto loan calculator below to see how much your credit score and loan term can affect your monthly payment and the total amount of interest you end up paying on your loan.
➗ go to the full page to view and use the calculator.
3. income & debt-to-income ratio
Lenders will want to make sure you have enough money to pay off your car loan each month. To determine this, they look at how much money you earn and spend each month.
They use the word “debt” instead of “expenses” and call the combination of the two their debt-to-income ratio.
Most lenders like to see your debt-to-income (DTI) ratio below 40%, including your new monthly auto payment. lower is better, and a low dti can help you get a better rate on your loan
3 steps to calculate the debt-to-income ratio
- add up all your monthly bills, including rent, car payments, student loans, utilities, etc.
- divide your total monthly bills by your total monthly income
- the resulting number is your debt-to-income ratio
👉 for example: If I have $5000 in monthly income and $2000 in monthly expenses and I divide 2k monthly expenses by 5k monthly income, I would have 40% dti.
➗ You can use our debt-to-income ratio calculator to find your DTI.
Lenders want to lend money to people with stable incomes.
The most common way borrowers show they have a steady income is by how long they’ve been employed at a location.
People who jump from job to job regularly are not considered to have a steady income.
5. initial payment
When you buy a new or used car or truck, you’ll need to make a down payment. lenders may give you a better interest rate if they can afford a large down payment.
It doesn’t matter if you have a 650 or 480 credit score.
Lenders want to make sure you have some experience in the game and generally prefer that you put a 20% down payment on a new car. Some lenders will lend with no down payment, but you may need a high credit score. You may also find that the loan terms are undesirable.
Used vehicles don’t depreciate in value as quickly as a new car, and because of this, lenders typically only ask consumers to put a 10% down payment on a used car.
If you have a trade-in vehicle, you can apply the value of your previous vehicle to your down payment.
Lenders typically do not require a down payment on a refinance loan.
who has the best auto loan rates? credit unions, banks, or online lenders?
Trying to figure out who has the best auto loan rates can seem like an impossible task.
It’s natural to want to use your local credit union or bank because you feel loyalty to the financial institution you trust for your monthly banking needs.
In some cases, going directly through your credit union or bank may be your best option. Your bank or credit union knows your finances and may consider information other than your credit score when making an offer.
However, local credit unions and banks may be limited in the loan programs they can offer. they may not be able to compete with the lowest auto loan rates online.
You should also consider the time it takes to go to your local financial institution to get an auto loan quote. online lenders can give you a quote in seconds.
⚠️ be careful!be careful if you get an auto loan from a credit union or bank with which you have a checking, savings or cd account. Some financial institutions require you to sign a document that allows them to accept payment without your permission if you don’t pay.
By comparison, you can get four loan offers in two minutes after completing a short one-page application with auto credit express®.
Even if you decide to see what your bank or credit union has to offer, getting a lender quote online is free and doesn’t take long.
Buying a car can be a stressful task because of all the decisions you have to make with that “helpful” and pushy car salesman on your hip.
A great way to help relieve some of that pressure and stress is to get pre-approved for an auto loan long before you pull into the car dealership parking lot.
Dealer financing can be expensive
Many people don’t realize they don’t have to use dealer financing options. dealer financing is often the most expensive option.
in fact, according to u.s. news:
“Having the entire car-buying process neatly bundled into a single transaction…makes buying easy. however, it is a horrible way to buy a car if you want to get a good deal. It’s a common dealer trick to keep you focused solely on the monthly payment while manipulating the trade-in value, vehicle price, and car loan terms. in most cases, they make a significant portion of their profit from the sale by driving up the cost of the auto loans they offer you.”
The one thing you should always do to get the best rate is to apply with more than one lender. Borrowers who shop consistently get better rates than borrowers who take the first deal offered. Getting pre-approved from multiple lenders gives you confidence that you’re getting the best deal possible. be sure to keep your requests within 15 days. the credit bureaus will recognize that you are shopping and record only a single inquiry. Multiple hard inquiries can hurt your credit!
auto loan rate scams
Most of us assume that our loan rate is dictated by our credit score and that lenders will offer the best rate they can give for a given score.
That may not always be the case. A 2021 Consumer Reports study looked at nearly 858,000 auto loans and found that “consumers who are financially similar and have comparable credit scores may be charged vastly different interest rates.”
What Consumer Reports found was that dealerships, in particular, can raise interest rates to what they think they can get, regardless of your credit score.
The best defense against this type of abuse is to shop around for multiple loan offers. Always get pre-qualified for a car loan before you talk to a dealer! If the dealer can beat your existing offer, great! with an offer in hand, it will be much more difficult for a dealer to overcharge you.
ways to lower your auto loan interest rate
with a credit score between 800 and 809, you will qualify for preferred loans. you will have solid offers at attractive prices. if you can get into the “super preferred range, you’ll qualify for even better rates and promotions.”
The time and money spent would put you at a lower risk level and open the doors to much more financial freedom and better opportunities.
* Annual Percentage Rates (APR), loan term, and monthly payments are estimated based on analysis of information provided by you, data provided by lenders, and information publicly available. all loan information is presented without collateral, and the estimated annual interest rate and other terms are not binding in any way. Lenders make loans at a variety of APRs based on borrowers’ credit and other factors. Please note that only borrowers with excellent credit will qualify for the lowest rate available. Your actual APR will depend on factors such as credit score, loan amount requested, loan term, and credit history. All loans are subject to credit review and approval. When evaluating offers, review the lender’s terms and conditions for additional details.