: A 100-point difference can change your monthly payment by $50 to $150 on a $25,000 loan.
While you do not strictly need "good" credit to buy a car, having it significantly reduces the cost and complexity of the purchase. You can secure an auto loan with nearly any credit score, but your score determines your interest rate (APR), required down payment, and overall loan terms. do you need good credit to buy a car
If your score is below 660, experts from NerdWallet and Consumer Reports suggest these steps to improve your odds: How Your Credit Score Affects a Car Purchase : A 100-point difference can change your monthly
: In most states, bad credit also leads to higher car insurance rates. Strategies for Buying with Lower Credit If your score is below 660, experts from
Data based on reports from Experian and WalletHub for Q4 2025/2026.
In 2026, most lenders categorize borrowers into five tiers. Those in the "Prime" range (661+) hold roughly 70% of all car loans. Credit Rating Score Range Avg. New Car APR Avg. Used Car APR ~4.7% – 5.3% ~6.8% – 7.2% Prime ~6.4% – 6.8% ~9.4% – 9.9% Nonprime ~9.0% – 11.0% ~12.0% – 14.0% Subprime ~12.0% – 14.0% ~16.0% – 19.0% Deep Subprime
