The average interest rate for a car loan varies depending on your credit score, income, and other factors. According to Experian, the average interest rate for a new car loan is 4. 24% and for a used car loan is 7. 99%. A higher interest rate means you'll pay more in interest over the life of the loan, which can impact the amount of car you can get approved for. To qualify for a larger loan, you may need a lower interest rate or a longer loan term.