Federal data show common new-car loan rates eased in May

What changed in the May data

The Federal Reserve's July 8 Consumer Credit release reports a 7.14% average for 60-month new-car loans at commercial banks in May 2026. The comparable first-quarter reading was 7.53%.

For 72-month new-car loans, the May average was 6.97%, down from 7.53% in the first quarter. The release marks May data as preliminary, and 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 made in May.

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 lower national benchmark does not guarantee that a particular borrower will receive a lower quote. Compare current written offers for the same amount and term, and make sure the payment fits alongside insurance, fuel, maintenance, taxes, and registration.