Approvals are still common, but interest rates jump significantly, often hitting 9.57% or higher.
Buying a car involves more than just picking a model and color; your credit score determines the actual price you'll pay through interest rates. While you can finance a vehicle with nearly any score, aiming for a "prime" rating will save you thousands over the life of the loan. The "Best" Score for Financing what's the best credit score to buy a car
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 Approvals are still common, but interest rates jump
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 The "Best" Score for Financing Financing is possible
This is the ideal range, typically unlocking the lowest APRs (average 4.66% - 5.27% for new cars).
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