Hoosier Drivers Face Rising Auto Interest Rates in 2026

STATEWIDE — Indiana drivers hoping to stretch their budgets in 2026 are facing some tough news.

Auto fintech company Lease End recently analyzed interest rate data from hundreds of thousands of quotes to see what the future holds for Hoosier drivers. The findings suggest a tighter market in Indiana, where interest rates are rising faster than the national average.

Zander Cook, co-founder and Chief Revenue Officer of Lease End, says the trend is localized.

“The Indiana area has been an area we’ve seen rates rising a little bit quicker than the rest of the nation,” Cook said. “APR (Annual Percentage Rate) is about 20 basis points above our national average right now.”

Auto interest rates for consumers in Indiana have increased to 9.21% APR in 2026, up from 9.11% in 2025. The state’s average is above the national average, which is at 9.00%. However, Cook notes that relief may be coming. He said historically, rates tend to drop by about 25 basis points from what they’ve seen in the last two years.

As for why Indiana faces higher rates, Cook points to a lack of competition from certain types of lenders.

“Out west, we see a lot more credit unions than we do in the Midwest and the East,” Cook said. “Credit unions tend to have slightly lower rates than just the traditional bank. Since there’s fewer concentration of credit unions heavy in the auto lending in the Midwest, that tends to drive up rates slightly.”

For those in Indiana thinking of buying a car, Cook has some advice.

“At Lease End, what we do is help you buy your auto lease,” he said. “If you’re in a leased vehicle and you’re looking to see what your options are at the end of the lease, we can help you go over those options. If you go into one bank or one credit union, you’re going to get one data point on what your rate is going to be. The more you shop, the more likely you are to drive that rate down if you’re looking to buy a vehicle.”

Cook says a lot of people don’t want to get their credit pulled multiple times, but if you’re looking at the same transaction, it doesn’t hurt you in the long run to pull your credit multiple times for the same transaction.

“We recommend going to multiple lenders to make sure you get the best rate possible,” he said.