Financing is possible but expensive. Rates for "deep subprime" borrowers can exceed 15% for new cars and 21% for used ones. New vs. Used: Average Scores
Many lenders use this specialized version of your score, which weighs your past auto-loan payment history more heavily than standard models.
To qualify for the most competitive interest rates in 2026, you should aim for a . what's the best credit score to buy a car
Lenders check if your income can comfortably handle a new monthly payment alongside your existing debts.
Approvals are still common, but interest rates jump significantly, often hitting 9.57% or higher. Financing is possible but expensive
Lenders typically have stricter requirements for new car loans because the loan amounts are higher. Vehicle Type Average Credit Score (2025/2026) ~753 Used Car ~689 Source: Experian State of the Automotive Finance Market How Your Score Changes the Total Price
A larger down payment (aim for 10-20%) can sometimes help you secure a better rate even if your score isn't perfect. Pro-Tips for Car Buyers Average Auto Loan Interest Rates By Credit Score - Bankrate Used: Average Scores Many lenders use this specialized
A higher credit score doesn't just lower your monthly payment; it slashes the total interest you pay. According to data from NerdWallet , a borrower with a score in the 700s might pay roughly in interest on a $20,000 used-car loan, while a borrower in the 500s could pay $11,400 for the exact same car. Key Factors Lenders Review