U.S. 48-Month New Car · Commercial Banks

About the U.S. Auto Loan Rate

This is the 48-month new-car loan rate from commercial banks, as reported quarterly by the Federal Reserve. It's the closest thing to a national auto-loan benchmark — a weighted average across thousands of bank-originated loans, before dealer markup, point-buying, or manufacturer subvention. Captive lenders (Toyota Financial, GM Financial) often offer promotional rates well below this number on new cars, while subprime borrowers routinely pay rates several points higher.

What drives the auto loan rate

Auto rates track the 2-year and 3-year Treasury yields plus a spread for credit risk and origination cost — typically 200–400 basis points above the comparable Treasury. They lag fed funds moves by 1–2 quarters because the Fed reports quarterly. The 2022–24 climb from 4% to over 8% was the steepest auto-rate jump in 40 years, contributing to the slowdown in new-car sales and the surge in average auto loan terms to 68+ months as buyers stretched to keep payments manageable.

What this means for car shoppers

At 7.24% on a $40,000 financed amount over 60 months, you'll pay ~$795/mo and about $7,720 in total interest — far more than the $3,200 you'd have paid at the 2021 low of 4.00%. The difference between a great rate and a bad rate on the same car can easily exceed $5,000 over the loan's life. Always shop the rate separately from the car itself: get pre-approved at your bank or credit union, then negotiate the price at the dealer using that as your floor.