Buying a car is exciting, but sorting out the financing can quickly dim the thrill. With so many lenders offering different rates—from 4.95% APR at one credit union to nearly 20% at another—knowing what counts as a good deal is half the battle. This guide lays out the current car loan interest rates in Ireland and the US, explains how your credit score affects the number you’re quoted, and points you to the cheapest options available as of early 2025.

4 related posts

Lowest car loan APR in Ireland (credit union): 4.95% APR (Kilcock Credit Union) ·
Average car loan interest rate (Irish credit unions): 8.6% APR ·
Typical bank variable APR (Ireland): 7.1% (petrol/diesel) – 6.5% (electric) ·
Maximum APR on personal car loans (Ireland): 19.9% APR

Quick snapshot

1Confirmed facts
  • Bank of Ireland offers variable rates from 6.5% APR (electric) and 7.1% APR (petrol/diesel) – Bank of Ireland
  • An Post offers fixed rates from 6.9% APR on car loans under €30k – An Post
  • Average credit union loan interest rate: 8.6% APR – Credit Union calculator
  • Kilcock Credit Union offers 4.95% (5.07% APR) on €15,000 car loans – Credit Union calculator
2What’s unclear
  • Whether overall interest rates will drop to 3% again – depends on ECB policy
  • Exact rate offered to an individual depends on credit score; not all lenders publish tiered tables publicly
3Timeline signal
4What’s next
  • Compare offers from at least three lenders before signing – rates vary widely
  • Consider pre-approval to lock in a rate while shopping

Six key data points from Ireland’s major lenders show one clear pattern: the APR you pay can differ by more than 15 percentage points depending on where you borrow.

Indicator Value Source
Lowest rate (Ireland) 4.95% APR (Kilcock Credit Union) Credit Union calculator
Average credit union rate 8.6% APR Credit Union calculator
Bank of Ireland electric car rate 6.5% APR Bank of Ireland
Bank of Ireland petrol/diesel rate 7.1% APR Bank of Ireland
An Post fixed rate 6.9% APR An Post
Avant Money maximum rate 19.9% APR Credit Union calculator

What is the current rate of interest on car loans?

Current car loan interest rates in Ireland

As of early 2025, Ireland’s main lenders offer a wide spread. Bank of Ireland (Ireland’s largest retail bank) lists variable rates starting at 6.5% APR for electric and plug-in hybrid cars and 7.1% APR for petrol and diesel cars. The same bank also offers a separate Motor Finance product with fixed APRs of 5.85% for battery electric vehicles and 6.3% for other cars – Bank of Ireland Motor Finance.

An Post (national postal and financial services provider) advertises fixed rates from 6.9% APR on car loans under €30,000. Their rate table shows APRs from 6.9% to 16.9% for loan amounts between €20,000 and €75,000. Meanwhile, the Credit Union calculator (ILCU-affiliate tool) reports an average loan interest rate of 8.6% APR in the Republic of Ireland and 12.02% in Northern Ireland.

Ireland’s range

From 4.95% APR at credit unions to 19.9% elsewhere, Irish car loan rates vary widely. Borrowers should compare at least three lenders.

Current car loan interest rates in the United States

In the US, new-car loan rates averaged around 6.5% to 7% for borrowers with excellent credit in early 2025, according to industry data. However, rates vary significantly by lender and credit profile – Credit Union calculator

How often do car loan rates change?

Lenders update their published rates whenever they adjust their cost of funding. Bank of Ireland confirmed its variable rates were correct as of 5 February 2025 – Bank of Ireland. An Post’s information was correct as of 20 January 2026 – An Post.

Bottom line: Irish car loan rates range from 4.95% APR (credit union) to nearly 20% APR (Avant Money). Borrowers should shop around to avoid paying thousands extra, as the rate depends heavily on the lender and loan amount.

The pattern: Irish car loan rates vary widely; shopping around can save thousands.

The spread

The difference between the cheapest and most expensive Irish car loan is about 15 percentage points. For a €20,000 loan over five years, that translates to roughly €3,000 in extra interest – real money that a half-hour of comparison shopping could save.

What’s a good interest rate for a car loan?

Is 10.9% APR good for a car loan?

For borrowers with excellent credit (scores of 740 or higher), 10.9% APR is high. Good rates for that group are typically below 7% APR. However, for subprime borrowers (scores below 600), 10.9% is in the normal range – Credit Union calculator

Is 7% a good rate for a car loan?

Yes, 7% APR is considered good for borrowers with average credit scores (660-719). For excellent credit, it’s slightly above the best available rates – Credit Union calculator

Average car loan interest rates by credit score

While Irish lenders rarely publish credit-score-specific rate tables, reference data from the US provides useful benchmarks:

  • Excellent credit (740+): generally below 7% APR
  • Good credit (710-719): approximately 5-6% APR
  • Fair credit (690-709): approximately 6-7% APR
  • Subprime (600-689): approximately 9-11% APR
  • Deep subprime (below 600): rates can exceed 12% APR
Bottom line: For Irish borrowers, “good” starts below 7% APR if you have strong credit. If your score is average, 7-9% is solid. Rates above 12% should trigger a second look at your credit report before applying.

The catch: your credit score determines which bracket you fall into, so know your score before shopping.

Why it matters

Irish credit unions – which set rates locally – can offer far better deals than national banks if your credit profile is strong. The 8.6% average masks a wide range: some credit unions lend at 4.95% while others charge near the max.

What is the interest rate on a car loan in Ireland?

Best fixed rates for car loans under €30k

An Post offers the most competitive fixed rate for smaller loans: from 6.9% APR – An Post. Kilcock Credit Union, a local member-owned lender, provides an even lower fixed-equivalent rate of 4.95% (5.07% APR) on €15,000 – Credit Union calculator

Variable rates from Irish banks

Bank of Ireland’s standard variable car loan APR starts at 6.5% for electric vehicles and 7.1% for petrol and diesel – Bank of Ireland. PTSB (Ireland’s third-largest retail bank) gives a sample repayment of €483.20 per month for €25,000 over 5 years at 5.99% interest (note: this is a nominal interest rate, not APR).

Check credit unions

Credit unions may offer lower rates than banks for strong credit profiles.

The implication: credit unions can undercut banks by 1-3 percentage points, but only if you become a member and meet local lending criteria.

Car loan rates from credit unions

Affinity Credit Union advertises a 7% interest rate (7.25% APR) on auto loans. Heritage Credit Union shows a representative APR of 7.9% on a €10,000 example. The average across all credit unions is 8.6% APR – Credit Union calculator

Can I get a 0% interest loan?

How 0% APR car loans work

0% APR is a promotional financing offer from automakers, typically available on new cars for short terms (24-36 months). It requires excellent credit – generally 740 or higher – and is rarely offered on used vehicles – Credit Union calculator

Promotional financing vs. cash rebates

When a dealer offers 0% financing, it often replaces a cash rebate. You need to compare the total cost: a €2,000 rebate at a standard 7% APR may beat 0% APR on a higher purchase price – Credit Union calculator

Credit score requirements for 0% financing

Automakers’ captives (e.g., Toyota Financial, Ford Credit) set a high bar: typically a FICO score of 740+. Most Irish lenders do not offer 0% car loans; instead they provide subsidised rates that are still above zero – Credit Union calculator

Which bank has the cheapest car loan?

Cheapest car loan in Ireland

The absolute cheapest car loan in Ireland as of early 2025 is from Kilcock Credit Union, offering 4.95% (5.07% APR) on €15,000 – Credit Union calculator. For larger loans, An Post (6.9% APR fixed) and Bank of Ireland’s Motor Finance product (5.85% fixed for electric cars) are the next best – Bank of Ireland Motor Finance.

Cheapest car loan by credit score

If your credit is excellent, target credit unions (4.95-7.9% APR). For average credit, An Post’s fixed rates (6.9-8.4% APR) are competitive. Subprime borrowers may find the best options at credit unions that consider broader membership criteria – Credit Union calculator

Tips to get the lowest car loan interest rate

  • Check your credit report before applying – errors can cost you a higher rate
  • Get quotes from at least three lenders: a credit union, a bank, and An Post
  • Consider a shorter loan term (3 years vs. 5) to qualify for lower rates
  • Ask if the lender offers a rate discount for electric vehicles
  • Negotiate the rate – some lenders will match a competitor’s offer
Bottom line: Irish borrowers with strong credit should start with Kilcock Credit Union, then compare An Post and Bank of Ireland. For those with average or thin credit, credit unions remain the most forgiving lenders – and the cheapest overall.

The implication: credit unions are the best starting point for most Irish borrowers.

Five lenders, one pattern: the rate you pay depends more on where you borrow than on what car you buy.

Lender APR Range Loan Amount Notes
Bank of Ireland (variable) 6.5% – 8.9% €2,000 – €75,000 Lower rates for electric cars
Bank of Ireland Motor Finance (fixed) 5.85% – 6.3% Varies Consumer hire purchase
An Post 6.9% – 19.9% €5,000 – €75,000 Best fixed for loans under €30k
Credit Union (average) 4.95% – 8.6% Varies by credit union Member-owned, local rates
Avant Money Up to 19.9% €2,000 – €100,000 Flexible terms but high max rate

Confirmed facts

  • Current rates from Bank of Ireland, An Post, credit unions, and Avant Money are publicly listed
  • Average credit union rate 8.6% APR per creditunion.ie calculator
  • Kilcock Credit Union offers the lowest documented rate at 4.95% (5.07% APR) – creditunion.ie calculator
  • PTSB gives a sample APR equivalent of ~5.99% on larger loans – PTSB

What’s unclear

  • Whether ECB rate cuts will bring average APRs below 5% in the next year
  • Exact rate an individual with a specific credit score will receive – most lenders don’t publish credit-score-based rate tables
  • How many borrowers actually receive the advertised “from” rates

Quotes from lenders

We offer variable rates from as little as 6.5% APR for electric and plug-in hybrid cars and 7.1% APR for petrol and diesel.

– Bank of Ireland spokesperson, via Bank of Ireland car loan page

Get the best fixed rates from 6.9% APR on car loans under €30k.

– An Post Money representative, via An Post car loan page

We offer an incredibly competitive low interest rate of just 4.95% (5.07% APR) on car loans of €15,000.

– Kilcock Credit Union, via Credit Union calculator

Summary

Irish car loan rates vary more than many borrowers expect – from under 5% to nearly 20% APR. The cheapest deals are at credit unions, but only if you’re a member. For the average buyer, a rate between 6.5% and 8.5% APR is realistic with decent credit. The key is to shop across at least three lenders and negotiate. For anyone in Ireland financing a car in 2025, the decision is clear: start with a credit union, then compare An Post and Bank of Ireland, and never accept the first offer without checking at least one alternative.

Additional sources

carspot.ie, personalbanking.bankofireland.com

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Frequently asked questions

Seven common questions about car loan interest rates in Ireland, answered.

How is car loan interest calculated?

Interest on car loans is typically calculated using the declining balance method. Each month you pay interest on the remaining principal, so your total interest cost depends on the APR, loan amount, and term. Use a car loan calculator to compare offers.

What is the difference between fixed and variable car loan rates?

A fixed rate stays the same for the loan term – your monthly payment never changes. A variable rate can move up or down with the lender’s standard rate, meaning your payments may change over time. Fixed rates offer predictability; variable rates may start lower but carry risk.

Can I get a car loan with a low credit score?

Yes, but the APR will be higher. Some Irish credit unions are more flexible than banks for borrowers with thin or impaired credit. Expect rates from 9% to 19.9% APR. Consider a guarantor loan or a smaller loan amount to improve approval odds.

Does refinancing a car loan lower the interest rate?

If rates have dropped or your credit score has improved since you took out the loan, refinancing could lower your APR. However, many Irish lenders charge early repayment fees, so factor in those costs before switching.

How long does it take to get a car loan approved?

Most Irish lenders provide an instant online decision within minutes. Full approval with funds typically takes 1-3 business days, depending on documentation and whether you need to become a credit union member first.

Should I get a car loan from a bank or a credit union?

Credit unions often offer lower rates (as low as 4.95% APR) but require membership. Banks like Bank of Ireland and PTSB may be faster for existing customers. Compare the total cost over the full term – the cheapest lender is not always the one with the lowest headline rate.

Can I negotiate the interest rate on a car loan?

Yes, especially if you have quotes from competing lenders. Some banks and credit unions are willing to match a lower offer. Ask directly: “Can you beat this rate from [competitor]?” The worst they can say is no.