Lenders generally categorize borrowers into tiers, which directly dictate the Annual Percentage Rate (APR) you are offered. As of early 2026, typical averages include:
Average APR is approximately 4.7% to 5.2% for new cars. These borrowers qualify for the best manufacturer incentives, including 0% financing. what credit do i need to buy a car
Rates can exceed 16% to 21% . Borrowers often need to visit "Buy Here Pay Here" dealerships or specialized subprime lenders. Average Auto Loan Interest Rates By Credit Score - Bankrate Rates can exceed 16% to 21%
Rates jump to roughly 9.6% to 11.3% for new cars. Approval is common, but total loan costs are notably higher. Approval is common, but total loan costs are notably higher
While there is no single "minimum" score required to buy a car, most lenders look for a credit score of to offer competitive interest rates and standard loan terms. You can still qualify with a lower score—even below 500—but you will likely face significantly higher interest rates and stricter requirements, such as a larger down payment. Credit Score Tiers and Interest Rates
Expect rates between 13.1% and 13.3% . Lenders may require proof of stable employment and a cosigner.
Average APR is roughly 6.3% to 6.7% for new cars. This tier represents the majority of auto loans.