Auto Loan Interest Rates Price History
1972–2025 · Federal Reserve
The average interest rate on a new car loan (48-month term) in the United States, tracked from 1972 to 2025. Borrowing money for a car has never been free, but the cost of that money has swung wildly over the decades. In the early 1980s, buyers were signing loans north of 16% — a number that sounds almost predatory today. Rates gradually fell through the 1990s and 2000s, bottoming out near 4% in the mid-2010s before climbing sharply again after the Federal Reserve began its aggressive tightening cycle in 2022.
Price in 1972
$8.32
Price in 2025
$7.50
Total Change
-9.9%
Years Tracked
53
Auto Loan Interest Rates Over Time
Compare to inflation: The chart above shows nominal (not inflation-adjusted) prices. Use the toggle to switch to inflation-adjusted values when available, or try the inflation calculator to convert any amount between years.
Key Insights
- Auto loan rates peaked at a brutal 16.5% in 1981, meaning a $10,000 car loan cost over $3,500 in interest alone over four years. By contrast, the same loan at 2015's rate of 4.25% would cost roughly $900 in interest.
- The late 1990s and 2000s brought a long era of relatively affordable financing, with rates hovering between 6% and 8%. Cheap credit made it easier for buyers to stretch into pricier vehicles without feeling the monthly payment pinch.
- After touching historic lows around 4.1% in 2021, rates nearly doubled in under two years, jumping to 7.62% by 2023 as the Fed raised its benchmark rate eleven times in the span of sixteen months.
- High rates in 2024 and 2025 are squeezing monthly payments at the worst possible time, since vehicle prices are also near record highs. The combination has pushed the average new car payment past $730 a month for the first time ever.
Year-by-Year Data
| Year | Price (Percent) | YoY Change |
|---|---|---|
| 1972 | $8.32 | — |
| 1973 | $8.81 | +5.9% |
| 1974 | $10.97 | +24.5% |
| 1975 | $11.28 | +2.8% |
| 1976 | $10.86 | -3.7% |
| 1977 | $10.28 | -5.3% |
| 1978 | $10.83 | +5.4% |
| 1979 | $12.61 | +16.4% |
| 1980 | $14.82 | +17.5% |
| 1981 | $16.50 | +11.3% |
| 1982 | $16.03 | -2.8% |
| 1983 | $13.07 | -18.5% |
| 1984 | $13.71 | +4.9% |
| 1985 | $12.91 | -5.8% |
| 1986 | $11.31 | -12.4% |
| 1987 | $10.46 | -7.5% |
| 1988 | $10.86 | +3.8% |
| 1989 | $11.98 | +10.3% |
| 1990 | $11.76 | -1.8% |
| 1991 | $10.94 | -7.0% |
| 1992 | $8.73 | -20.2% |
| 1993 | $8.14 | -6.8% |
| 1994 | $8.12 | -0.2% |
| 1995 | $9.01 | +11.0% |
| 1996 | $8.42 | -6.5% |
| 1997 | $8.54 | +1.4% |
| 1998 | $7.71 | -9.7% |
| 1999 | $7.56 | -1.9% |
| 2000 | $8.63 | +14.2% |
| 2001 | $7.64 | -11.5% |
| 2002 | $6.93 | -9.3% |
| 2003 | $6.08 | -12.3% |
| 2004 | $5.74 | -5.6% |
| 2005 | $6.45 | +12.4% |
| 2006 | $7.72 | +19.7% |
| 2007 | $7.52 | -2.6% |
| 2008 | $6.79 | -9.7% |
| 2009 | $6.47 | -4.7% |
| 2010 | $5.46 | -15.6% |
| 2011 | $4.90 | -10.3% |
| 2012 | $4.32 | -11.8% |
| 2013 | $4.25 | -1.6% |
| 2014 | $4.33 | +1.9% |
| 2015 | $4.25 | -1.8% |
| 2016 | $4.14 | -2.6% |
| 2017 | $4.36 | +5.3% |
| 2018 | $4.85 | +11.2% |
| 2019 | $5.19 | +7.0% |
| 2020 | $4.55 | -12.3% |
| 2021 | $4.10 | -9.9% |
| 2022 | $5.16 | +25.9% |
| 2023 | $7.62 | +47.7% |
| 2024 | $7.85 | +3.0% |
| 2025 | $7.50 | -4.5% |
Sources & Methodology
Average finance rate on new car loans at commercial banks, 48-month term, as reported in the Federal Reserve G.19 Consumer Credit statistical release. Rates represent what borrowers actually paid at origination, averaged across all credit tiers. Data prior to 1980 may reflect a narrower sample of reporting banks.
Primary source: Federal Reserve
For a full explanation of how we collect and adjust data, see our methodology page.