Core Insights - The average auto loan interest rates for new cars in Q3 2025 were 6.56%, while used car loans averaged 11.40% according to Experian's report [2] - Credit scores significantly influence auto loan interest rates, with higher scores leading to lower rates [4][8] Interest Rates by Credit Score - Borrowers with credit scores between 781 to 850 (super prime) received the lowest rates of 4.88% for new car loans and 7.43% for used car loans [5] - Rates increase substantially for lower credit scores, with subprime borrowers (501 to 600) facing rates of 13.34% for new cars and 19.00% for used cars [5] Geographic Variations - Interest rates vary by state, with Minnesota and South Dakota having average rates under 6% for new cars, while Alabama, Georgia, and New Mexico had rates above 8% [5] - For used cars, southern states faced average rates around 12%, whereas Utah and Washington had the lowest rates just under 9% [5] Importance of Interest Rates - The interest rate directly affects the total cost of a car loan, with even minor reductions in rates potentially saving borrowers hundreds of dollars [6] - For instance, a borrower with excellent credit could save over $9,500 in interest over the life of a $30,000 loan compared to a borrower with poor credit [7] Strategies for Better Rates - To secure competitive interest rates, borrowers are encouraged to shop around and improve their credit scores [8]