---
title: What is APR On A Car Loan and What Is A Good Rate Right Now?
description: Car Pro Show Host Jerry Reynolds explains what APR is and what is a key factor in the rate you recieve for your car loan.
---

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# [What is APR On A Car Loan and What Is A Good Rate Right Now?](https://www.carpro.com/blog/what-is-apr-on-a-car-loan-and-what-is-a-good-rate-right-now)

 Written by [Jerry Reynolds](https://www.carpro.com/blog/author/jerry-reynolds) | Jul 17, 2026 1:37:02 PM

 

Q:  What is APR on a car loan and what is a good rate right now?  

A: APR stands for Annual Percentage Rate. It includes the interest rate and other fees, thus representing the true annual cost of your car loan. According to [Edmunds,](https://www.edmunds.com/car-loan-apr-interest-rate/) the average new-vehicle APR in June was 7%. Your credit score plays a major role in the APR you receive. Looking at the first quarter, according to [Experian Automotive](https://www.experian.com/blogs/ask-experian/average-car-loan-interest-rates-by-credit-score/) data shows the average APR for borrowers were an excellent Sub-Prime credit score was 4.55% and 16.01% for borrowers with credit score in the deep-subprime segment. 

<https://www.carpro.com/hs/cta/wi/redirect?encryptedPayload=AVxigLL0hvDb4HZbSXOJAJFotHCIyhpEXL8QVLTkT1MNCDR5JD5oHcW1KvmpPJAfbK4rX1V4ervtWYrh%2FS9l9v5hT3BvKZmLaXQo8DKUlqgD8W0dlH4P8apIvEF9pqCe1gWZ%2Bx5QhXoBeUrUbmnA2%2Bs88TNhbyLc9D0CgezUOdzSxwj%2FEnlloStm%2FqQQj3oc7uP0cozDxHxNGxru&webInteractiveContentId=125646121292&portalId=2684054>

Photo: [gopixa](https://www.shutterstock.com/g/gopixa)/Shutterstock.com.

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