The Federal Reserve's October 7 Consumer Credit release reports a 7.54% average for 60-month new-car loans at commercial banks in August 2026. That was 0.40 percentage point above the 7.14% May reading.
For 72-month new-car loans, the August average was 7.17%, up 0.20 percentage point from 6.97% in May. The terms-of-credit data are not seasonally adjusted.
What the figures do and do not measure
The Fed describes each figure as a simple, unweighted average of each reporting bank's most common annual percentage rate during the first calendar week of the quarter's middle month. It is a useful market reference, but it is not the average APR across every loan originated in August.
A buyer's offer can differ based on the lender, credit profile, loan term, down payment, amount financed, vehicle, and other underwriting factors. Used-car and dealer-finance offers are not represented by these two commercial-bank new-car series.
Compare the total financing cost
Request offers from more than one bank, credit union, or other lender before choosing a vehicle.
Compare APR, interest rate, loan term, amount financed, total of payments, and any required products or conditions.
Keep the vehicle's out-the-door price separate from the financing terms so each part of the deal is clear.
Check whether a longer term lowers the payment while increasing total interest or the risk of owing more than the car is worth.
Use the data as a benchmark, not a promise
A higher national benchmark does not mean every lender or borrower saw the same change. Compare current written offers for the same amount and term, and make sure the payment fits alongside insurance, fuel, maintenance, taxes, and registration.
The same release says August consumer credit overall rose at a 1.9% seasonally adjusted annual rate, but its August tables do not provide a current motor-vehicle-loan balance. That broad figure should not be treated as an auto-loan balance or an individual borrower's risk measure.
Primary references
Sources and methodology
MyFavi links to the original material so you can verify the details, reporting period, and later updates.
The commercial-bank figures are unweighted averages of commonly charged APRs, not advertised offers, applications, approvals, or borrower-specific terms. The Fed discontinued its separate finance-company new-car loan terms series in this release. This article is not a loan offer or financial advice.
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