What is the interest rate on a 72 month car loan?

[SanAlivia]

The average interest rate on a 72-month car loan in 2024 ranges between 6.28% and 7.74% for new cars, and 7.66% to 9.24% for used cars. However, borrowers with excellent credit can secure rates as low as 4.59% (new) or 5.39% (used). Your actual rate is determined by credit score, vehicle age, lender, and market conditions.

Current market data from sources like Experian and major lenders indicates a clear tiered structure. For well-qualified buyers, promotional or top-tier rates are available. For instance, as of mid-2024, Hagerty's financing data shows the following "as low as" APRs for the most creditworthy applicants:

Loan Type	12-36 Month Term APR	61-72 Month Term APR
New Auto Loan	3.89%	4.59%
Used Auto Loan	4.79%	5.39%

It's critical to understand these are best-case scenario rates. The national average is significantly higher. According to recent quarterly automotive finance reports, the average APR for a new car loan spanning 61-72 months is approximately 7.74%. For used cars in the same term length, the average jumps to around 9.24%. These averages account for all credit tiers.

Your credit score is the most decisive factor. A borrower with a FICO score above 720 will receive offers close to the lowest advertised rates. A score between 660-719 may see rates 2-4 percentage points higher. For scores below 660, rates can exceed 12% or even 15%, making a 72-month term very expensive.

The loan term itself directly impacts the rate. Lenders view longer terms as riskier, so the rate for a 72-month loan is typically 0.5 to 1.5 percentage points higher than for a 36-month loan on the same vehicle. You pay for the convenience of a lower monthly payment over a longer period.

To secure a competitive rate on a 72-month loan, focus on improving your credit score before applying, get pre-approved from a credit union or bank (which often have lower rates than dealership financing), and consider making a substantial down payment of 20% or more. Always compare the total cost of the loan (principal + interest), not just the monthly payment.

[VanAlina]

I just financed a used SUV with a 72-month loan last month. My credit score is pretty good, around 740. I shopped around at my local credit union, an online bank, and the dealership.

The dealership’s first offer was 7.1%. My credit union came in at 6.4%. I used that quote to get the dealership to match it. So, I ended up at 6.4% for a 5-year-old car.

The “as low as” rates you see advertised? Those are for the absolute best borrowers. For most people with good credit, expect something in the 6% to 8% range right now for a new car. For used, add another 1-2%. Don’t just accept the first offer—getting multiple quotes is the only way to know you’re getting a fair deal.

[DiWillow]

As a financial planner, I advise clients to look beyond the monthly payment. A 72-month loan at an average 7.74% rate makes the total interest cost substantial.

On a $35,000 new car loan, you’d pay nearly $8,700 in interest over six years. That’s a significant premium for the vehicle.

If your budget requires a 72-month term to afford the payment, consider a less expensive car. A shorter 48-month loan at a lower rate saves thousands and builds equity faster. The primary goal should be minimizing total interest paid, not just the monthly outlay.

Always run the numbers for total loan cost. That long term locks you into the car and the loan, often leading to being “upside-down” (owing more than the car’s value) for several years.

[VonGia]

On the lot, we often focus on the monthly payment. A 72-month term lowers that payment, making a higher-priced vehicle seem more accessible. Manufacturers sometimes offer special low rates like 2.9% or 3.9% on select new models to move inventory, but these are usually for shorter terms.

For a standard 72-month loan through the dealership’s finance office, rates are tiered. We submit your application to multiple lenders. The rate you get is based on their buy-rate, plus a possible markup. A customer with a 800 score might get a 5.5% buy-rate, while someone at 650 could be at 11%.

My advice? Know your credit score before you walk in. If you have strong credit, you can push for a rate closer to the lender’s buy-rate. The difference between 5.5% and 6.5% over 72 months is real money.

[DelBrianna]

I’m a loan officer at a regional bank. When we evaluate a 72-month auto loan application, risk assessment is key. The longer term increases our exposure, so pricing reflects that.

The single biggest lever is your credit report. A clean history with no late payments and a low credit utilization ratio on your cards will get you our best rates. We also look at debt-to-income ratio; even with great credit, if you’re overextended, the rate might be adjusted upward.

The vehicle’s age and mileage matter more for used cars. A 72-month loan on a car that’s already 4 years old is a higher risk—the collateral value depreciates. We might offer a slightly higher rate or require a larger down payment to offset that.

Rates are dynamic. They’re tied to the Fed’s moves and the broader bond market. What was available six months ago may not be there today. Getting a pre-approval from us gives you a locked-in rate to shop with, which is a powerful tool at the dealership.