Best Auto Loan Rates With a Credit Score of 840 to 850
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Summary: A review of the best auto loan rates for new, used & refinanced vehicles based on credit scores from 840 to 850.
Congratulations! You’ve reached the very top credit score tier, and you’re eligible for the best auto loan offers available. Your credit score of 840 to 850 is in the “super-prime” range (781-850). That qualifies you for the lowest interest rates, as well as for a wide range of promotions and incentives.
Be careful, though. 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 they need to.
Some borrowers with super-prime credit scores—720 or higher—were given loans with a 0 percent annual percentage rate. Others with similar scores got loans with APRs over 25 percent.
Source: Consumer Reports
To get the rates you’ve earned you’ll need to shop carefully, compare multiple loan offers, and watch out for your own interests.
Your credit isn’t the only factor affecting your interest rate. You’ll have to decide whether to finance through the car 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 close look at auto loan rates for borrowers with credit scores between 840 and 850.
Disclaimer: “Credit score” refers to the FICO score in this article. If you have a different score (i.e. VantageScore), that does not likely equal your FICO. For example, a 645 VantageScore could equal any FICO score… 643, 644, 645? Who knows? You can get your FICO score here.
Current Auto Loan Interest Rates
(June 2022)
Auto Loan Rates by Credit Score
Average rates for Q1 (January – March) 2022
CategoryScore RangeNew car
average interest rateUsed car
average interest rate
Deep subprime300-50014.76%20.99%
Subprime501-60010.87%17.29%
Near prime601-6606.70%10.48%
Prime661-7803.56%5.58%
Super prime781-8502.40%3.71%
Actual interest rates are based on many factors such as state, down payment, income, and others. Source: Experian: State of the Automotive Finance Market Q1 2022
Auto Loan Rates by Type of Financing
Lowest found rates | Accessed on 06/03/2022
36 months
or less37-60
months61-72
months73-84
months
New Auto2.99%2.24%2.39%2.99%
Used Auto3.24%2.49%2.64%3.24%
Auto Refinance1.99%1.99%1.99%2.89%
Private Party2.99%3.24%3.44%3.69%
Lease Buyout2.14%1.99%2.59%2.89%
* Source: MyAutoLoan.com
Interest rates (APR) shown are the lowest rates participating lenders have recently offered. Your actual interest rate (APR) may be higher based on your unique, individual credit situation.
Auto Loan Rates for a New Car With 840 to 850 Credit Score
The average interest rate for a new car loan with a credit score of 840 to 850 is 2.40%.
Most dealerships will advertise plenty of incentives for buying a new vehicle, such as cash rebates, low interest rates, or special lease offers. Buying a new car will generally come with much better interest rates than buying a used vehicle.
With a credit score of 840 to 850, you will qualify for all of these offers: when super-prime buyers come around, dealers roll out the red carpet. You may wish to try several dealers and see who makes the best offer.
☝️ Remember that the rates cited are averages. You may get different offers from different lenders. Make sure you shop around for the best rates instead of going with the option that has the best advertising.
Average Auto Loan Terms for a New Car
Here’s what you can realistically expect to get based on national averages.
CategoryScore RangeAverage interest rateAverage loan amountAverage term (months)Average monthly payment
Deep subprime300-50014.76%$26,91471.99$552
Subprime501-60010.87%$31,84773.36$584
Near prime601-6606.70%$36,87474.17$604
Prime661-7803.56%$37,43371.18$588
Super prime781-8502.40%$32,61564.33$548
Finding the Best New Car Auto Loan Rates for Near-Prime Credit
With a credit score of 840 to 850, you will have every possible financing option. You’ll still have to review those offers and select the best one for your needs.
? The easiest way to get offers from multiple lenders is to use an auto loan matching service. These services can usually get you multiple offers in a matter of minutes.
? Our #1 Auto Loan Matching Service
Helping people with any-credit auto financing since 1999!
Over 1000 dealerships nationwide.
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Auto Loan Rates for a Used Car With 840 to 850 Credit Score
A lot of people wonder what a good interest rate is on a used car.
We see incredible offers online and on TV for new car loan rates, but we rarely see used auto rates advertised. In general, borrowers will pay a higher interest rate for a used car loan.
With a credit score of 840 to 850, you should qualify for the best APR a lender offers.
The average rate for a used car loan in the 840 to 850 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 may be difficult for them to sell it for enough to cover your balance. That means more risk to the lender. Lenders charge higher rates when their risk rises.
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 will not give you the VIN, consider this a major red flag and move on to another vehicle.
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Average Auto Loan Terms for a Used Car
Here’s the rate you can expect to get based on national averages.
CategoryScore RangeAverage interest rateAverage loan amountAverage term (months)Average monthly payment
Deep subprime300-50020.99%$15,69960.44$425
Subprime501-60017.29%$18,24664.12$427
Near prime601-66010.48%$22,29867.00$424
Prime661-7805.58%$24,02666.95$407
Super prime781-8503.71%$23,58063.28$405
You can see the impact of the higher rates. The difference, of course, is that the average sale price of a new car in the US is $39,960, while the average price of a used car is $22,000. That’s a big difference!
Auto Refinance Rates With 840 to 850 Credit Score
You can qualify to refinance with a 840 to 850 credit score!
If you had a lower credit score when you took out your car loan or if you financed your car through a dealer and didn’t get a great deal, you could save money by refinancing.
Refinancing may be able to lower your monthly payment and put that extra saved interest right into your pocket.
If you refinance with a longer-term loan you could lower your monthly payment considerably. You will pay more in interest and you may end up owing more than your car is worth.
If you’re considering refinancing, check your loan agreement first. Some loans have prepayment penalties that make refinancing less desirable.
Average Auto Refinance Rates
Refinance rates are usually the same as rates for 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 refinance loans. Here are five things that can make a big difference to the car loan rate you’re offered.
1. Your Credit Score
Auto loans are secured: your vehicle serves as collateral for the loan. If you default, the lender can repossess the car. That makes your loan less risky than an unsecured loan would be, so interest rates are lower than they are for most unsecured loans.
Your credit score has a huge impact on the interest rate you’re offered and on the cost of your loan. In the table below you can see the average interest rates for both new and used cars by credit score to see just how much of an effect it has.
Average auto loan rates by credit score (Q2 2021)
CategoryScore RangeNew car
average interest rateUsed car
average interest rate
Deep subprime300-50014.76%20.99%
Subprime501-60010.87%17.29%
Near prime601-6606.70%10.48%
Prime661-7803.56%5.58%
Super prime781-8502.40%3.71%
Actual interest rates are based on many factors such as state, down payment, income, and others. Source: Experian: State of the Automotive Finance Market Q1 2022
How Your Credit Score Affects the Monthly Payment
Here’s an example to illustrate the difference your credit score makes in determining your monthly payment.
? Example:
Let’s assume you’re taking out a new car loan with the following terms:
Car cost: $30,000
Down payment: $3,000
Loan term: 48 months
Credit ScoreInterest RateMonthly PaymentTotal Interest Paid
300-50014.76%$748.15$8,911
501-60010.87%$696.13$6,414
601-6606.70%$642.80$3,854
661-7803.56%$604.33$2,008
781-8502.40%$590.49$1,344
As you can see, your credit score has a huge impact on the interest rate you’re offered and on the cost of your loan. With a score of 840 to 850, you are in the best credit score range for auto loans and you will pay the lowest available interest rates.
2. Loan Term
For many people, the size of their monthly payments is the key to affordability. The loan term has a larger 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 from above to compare the effect of the loan term vs a small credit score change on your car loan.
? Example:
Same as before, our car loan has the following terms:
Car cost: $30,000
Down payment: $3,000
Interest rate: 3.16%
Credit score: 840-850
Credit Score3 Year
(36 months)5 Year
(60 months)7 Year
(84 months) Monthly PaymentTotal InterestMonthly PaymentTotal InterestMonthly PaymentTotal Interest
840$787.10$1,336$487.08$2,225$358.71$3,132
841$787.10$1,336$487.08$2,225$358.71$3,132
842$787.10$1,336$487.08$2,225$358.71$3,132
843$787.10$1,336$487.08$2,225$358.71$3,132
844$787.10$1,336$487.08$2,225$358.71$3,132
845$787.10$1,336$487.08$2,225$358.71$3,132
846$787.10$1,336$487.08$2,225$358.71$3,132
847$787.10$1,336$487.08$2,225$358.71$3,132
848$787.10$1,336$487.08$2,225$358.71$3,132
849$787.10$1,336$487.08$2,225$358.71$3,132
? Long-term car loans provide a lower monthly payment, but they have real disadvantages. You will pay significantly more total interest and you may owe more than your car is worth for much of your loan term. Look into the issues around long-term car loans before you decide!
Try It Yourself
Use our auto loan calculator below to see just how much your credit score and loan term can affect your monthly payment and the total amount of interest you end up paying for 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 that you have enough money to pay your vehicle 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 your debt-to-income ratio.
Most lenders like to see your debt-to-income (DTI) below 40%, including your new monthly auto payment. Lower is better, and a low DTI may help you get a better rate on your loan
3 Steps To Calculate Debt-To-Income Ratio
- Add up all of 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 $5,000 in monthly income and $2,000 in monthly expenses and I divided the monthly expenses 2k by monthly income 5k, I would have a 40% DTI.
➗ You can use our debt-to-income ratio calculator to find your DTI.
4. Employment
Lenders want to lend money to people with steady incomes.
The most common way borrowers show that they have a consistent income is by the length of time they have been employed at one location.
People who jump from job to job regularly are not considered to have a steady income.
5. Down Payment
When you purchase a new or used car or truck you are going to have to make a down payment. Lenders may give you a better interest rate if can make a large down payment.
It doesn’t matter whether you have a 650 credit score or a 480.
Lenders want to make sure that you have some skin in the game and generally prefer to see you make a 20% down payment on the purchase of 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 terms of the loan are not desirable.
Used vehicles don’t depreciate their value as fast as a new automobile and because of this, lenders usually only ask consumers to make a 10% down payment on a used car.
If you have a trade-in you can apply the value of your previous vehicle to the down payment.
Lenders do not typically ask for 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 feel like an impossible task.
It is natural to want to use your local Credit Union or Bank because you feel loyalty to the financial institution that you trust with your monthly banking needs.
In some instances, going directly through your Credit Union or Bank can be your best bet. Your bank or credit union knows your finances and may consider information other than your credit score when they make 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 online auto loan rates.
You also have to consider the time it takes to go to your local financial institution to obtain a quote for an auto loan. Online lenders may give you a quote in seconds.
⚠️ Be Careful!
Be careful if you get an auto loan from a Credit Union or Bank that you have a checking, savings, or CD account with. Some financial institutions require you to sign a document allowing them to take payment without your permission if you do not pay.
In comparison, you can obtain four loan offers within two minutes of filling out 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 an online lender quote is free and takes next to no time.
Purchasing a car can be a stressful endeavor because of all the decisions you must make with that ‘helpful’ high-pressure car salesman stuck to your hip.
A great way to help alleviate some of that pressure and stress is by getting pre-approved for an auto loan long before you walk onto the car dealership lot.
Dealer Financing Can Be Costly
Many people do not realize that they do not have to use the dealership’s 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 one transaction…makes purchasing easy. However, it’s 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 they manipulate the trade-in value, vehicle price, and car loan terms. In most cases, they make a significant portion of their profit on the sale by marking up the cost of the car loans you are offered.”
The one thing you should always do to get the best rate is to apply with more than one lender. Borrowers who shop around consistently get better rates than borrowers who take the first deal they are offered. Getting pre-approved by several lenders gives you confidence that you are getting the best deal you can.
Be sure to keep your applications within a 15-day window. The credit bureaus will recognize that you are shopping and record only a single hard inquiry. Multiple hard inquiries can harm 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 study from Consumer Reports analyzed almost 858,000 car loans and determined that “consumers who are financially similar and have comparable credit scores can be charged wildly divergent interest rates”.
What Consumer Reports discovered was that dealers, in particular, may mark up interest rates to whatever they think they can get, regardless of your credit score.
The best defense against this type of abuse is to shop for multiple loan offers. Always get prequalified for a car loan before you talk to a dealer! If the dealer can beat your existing offer, that’s great! With an offer in hand, it will be much harder for a dealer to overcharge you.
Ways to Reduce Your Auto Loan Interest Rate
With a credit score between 840 and 850, you are going to qualify for prime loans. You will have solid offers at attractive rates. If you can get into the “super-prime range you’ll qualify for even better rates and promotions!
The time and money spent would put you in a lower risk bracket 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 publicly available information. All loan information is presented without warranty, and the estimated APR and other terms are not binding in any way. Lenders provide loans with a range of APRs depending on borrowers’ credit and other factors. Keep in mind that only borrowers with excellent credit will qualify for the lowest rate available. Your actual APR will depend on factors like credit score, requested loan amount, loan term, and credit history. All loans are subject to credit review and approval. When evaluating offers, please review the lender’s Terms and Conditions for additional details.