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Auto loan rate report · October 2026

Auto loan rates, October 2026: the best start at 4.25% or less

The typical new auto loan starts at 5.00% APR, and the top tenth at 4.25% or less. Where you live and where you borrow decide which you get.

Typical new auto loan
5.00%
Top 10% up to
4.25%
Credit unions, typical
4.99%
Used, typical
5.25%

Compare today’s auto loan rates

Each month we compare new and used auto loan rates at the banks and credit unions we track, nationally and by state and metro. These are this month’s findings; each has its own link to share.

Takeaways

  1. Half of new auto loans start at 5.00% or less, and 194 under 4%
  2. Credit unions typically charge 1.61 points less than banks: about $1,343 on a $30,000, 5-year loan
  3. A used car costs 0.25 points more to finance: 5.25% against 5.00%
  4. New auto loans cost the least in Georgia and the most in Vermont
  5. In Charlotte, shopping around saves 1.19 points

Finding 1

Half of new auto loans start at 5.00% or less, and 194 under 4%

On a $30,000, 5-year loan, the typical rate means about $3,968 in interest, and one in the top tenth $3,353 or less.

How new auto loans are pricedNumber of loans at each rate (APR), in half-point steps
  • Under 4%
  • 4% or more
A bar chart of how many new auto loans start at each rate, in half-point steps from 0% to 12% and up. The typical one starts at 5.00%; 194 start under 4%.

Source: Carrot Rate, Auto loan rate report, October 2026

Finding 2

Credit unions typically charge 1.61 points less than banks: about $1,343 on a $30,000, 5-year loan

The typical credit union’s new auto loan starts at 4.99% APR, a bank’s at 6.60%. Among banks, the largest typically start at 5.99% and those under $10 billion at 6.64%.

What $30,000 over 5 years costs in interestAt each APR, repaid in equal monthly payments
A bar chart of the interest on $30,000 over 5 years: Top 10% $3,353 at 4.25%; Credit unions, typical $3,960 at 4.99%; All lenders, typical $3,968 at 5.00%; Banks, typical $5,303 at 6.60%.

Source: Carrot Rate, Auto loan rate report, October 2026

Finding 3

A used car costs 0.25 points more to finance: 5.25% against 5.00%

The typical used auto loan starts at 5.25% APR, and the top tenth at 4.49% or less. At credit unions, used loans typically start at 5.24%; at banks, 6.75%.

New and used auto loansTypical APR
  • New
  • Used
A chart of typical new and used auto loan rates: All lenders 5.00% new, 5.25% used; Credit unions 4.99% new, 5.24% used; Banks 6.60% new, 6.75% used.

Source: Carrot Rate, Auto loan rate report, October 2026

Finding 4

New auto loans cost the least in Georgia and the most in Vermont

The typical new auto loan from lenders with branches in Georgia starts at 4.74% APR, 1.38 points less than in Vermont. Half the states sit between 4.99% and 5.27%.

Typical new auto loan by stateAPR, at lenders with branches in the state; darker is cheaper
A map of the typical new auto loan in each state, from 6.12% in Vermont to 4.74% in Georgia.
  • 5.36%–6.12%
  • 5.22%–5.32%
  • 5.00%–5.18%
  • 4.99%
  • 4.74%–4.97%
All states, cheapest first
StateTypicalTop 10% up toInstitutions
Georgia4.74%3.89%64
North Dakota4.87%4.35%20
Illinois4.90%4.00%134
Maine4.90%4.39%48
Nebraska4.97%4.23%50
California4.99%4.25%222
Connecticut4.99%4.45%63
Florida4.99%4.09%127
Hawaii4.99%4.25%36
Michigan4.99%4.27%155
Mississippi4.99%4.43%37
Missouri4.99%4.45%76
New York4.99%3.99%188
South Carolina4.99%3.99%51
South Dakota4.99%4.35%25
Tennessee4.99%4.08%100
Texas4.99%4.24%276
Utah4.99%4.17%48
Wyoming4.99%4.47%16
Alabama5.00%4.28%58
Arkansas5.00%4.11%35
District of Columbia5.00%4.25%41
Iowa5.00%4.49%71
Montana5.00%3.99%24
North Carolina5.00%4.11%64
Virginia5.00%4.25%93
Wisconsin5.00%4.24%94
Louisiana5.05%4.12%66
Minnesota5.17%4.49%70
Kentucky5.18%4.26%53
Maryland5.22%4.28%68
West Virginia5.22%4.25%46
Oklahoma5.24%4.38%57
Oregon5.24%4.35%55
Pennsylvania5.24%4.29%231
Indiana5.25%4.39%111
New Jersey5.25%4.39%88
Ohio5.25%4.49%154
New Mexico5.27%4.40%36
Washington5.32%4.49%82
Colorado5.36%4.75%64
Nevada5.37%4.27%26
Idaho5.39%4.33%37
Kansas5.41%4.63%74
Alaska5.43%4.99%12
Delaware5.47%5.19%19
Massachusetts5.49%4.50%131
Arizona5.50%4.49%48
New Hampshire5.60%4.75%29
Rhode Island5.74%4.61%18
Vermont6.12%5.02%16

Source: Carrot Rate, Auto loan rate report, October 2026

Finding 5

In Charlotte, shopping around saves 1.19 points

Charlotte’s typical new auto loan starts at 5.25%, but its top tenth at 4.06% or less. Atlanta is the cheapest at 4.67%.

Large metros: typical and top 10%New auto loans, APR
  • Typical
  • Top 10% up to
A chart of each large metro’s typical new auto loan and the rate its top 10% pay, from Atlanta (4.67% typical) to Seattle (5.50%).

Source: Carrot Rate, Auto loan rate report, October 2026

Questions borrowers ask

What is a good auto loan rate right now?
For a new car, 4.25% APR or less puts a loan in the top tenth of the 2,929 lenders we track; the typical one starts at 5.00%.
Do credit unions charge less than banks for car loans?
Typically, yes: 4.99% against 6.60% on a new car.
How much more does a used car loan cost?
Typically 0.25 points: 5.25% against 5.00% for a new car.

About this report

The figures come from the rates we collect from banks’ and credit unions’ own websites, the same as our auto loan pages: each lender’s lowest advertised APR for a new or used car, rates with conditions such as autopay included. Advertised rates usually need excellent credit. Typical is the middle rate: half the lenders charge more. The top 10% is the rate the lowest-priced tenth charge or beat.State and metro figures cover the institutions with branches there, and need at least ten of them. How we collect rates

Use these charts

You’re free to republish the charts and figures in this report, in print or online, under CC BY 4.0: credit Carrot Rate and link to this report. Each chart has an image with the credit on it, its data, and code to embed it.

Cite this report

Carrot Rate, “Auto loan rates, October 2026: the best start at 4.25% or less”, October 2026. carrotrate.com/reports/auto-loans/2026-10

For reporters

For more data, another place or a comment, email press@carrotrate.com.

Compare today’s auto loan rates