Finance guide · Elgin CDJR
What Credit Score Is Needed to Finance a Car?
There is no single cut-off. Lenders sort applicants into tiers, and the tier sets the rate more than anything else. Here are the current averages by tier, what each tier can expect, and how to improve the offer before you sign.
Quick answer
You can finance a car with almost any credit score; the score decides the rate and the terms. In Experian's Q2 2026 data the average new-car APR was 4.41 percent for super prime borrowers (781 and up), 6.15 percent for prime (661 to 780), 9.71 percent for near prime (601 to 660), 13.52 percent for subprime (501 to 600) and 16.11 percent for deep subprime (300 to 500). Used-car rates ran higher in every tier, from 6.29 to 21.62 percent. The overall averages were 6.35 percent new and 11.19 percent used. A score of 661 or better puts you in prime, where most manufacturer offers apply. Below that, a larger down payment, a shorter term, a co-signer or a less expensive vehicle improves the offer. Elgin CDJR works with lenders across every tier.
Average rates by credit tier
| Tier | Score range | New | Used |
|---|---|---|---|
| Super prime | 781-850 | 4.41% | 6.29% |
| Prime | 661-780 | 6.15% | 8.81% |
| Near prime | 601-660 | 9.71% | 13.93% |
| Subprime | 501-600 | 13.52% | 19.10% |
| Deep subprime | 300-500 | 16.11% | 21.62% |
| All borrowers | 6.35% | 11.19% |
Experian's tiers use VantageScore 4.0. The average amount financed was $43,610 for a new vehicle and $27,852 for a used one. Averages are not offers; the rate on any contract depends on the lender, the term, the vehicle's age and your down payment.
Why used rates are higher
A used car is worth less, depreciates less predictably and is more likely to be financed over a longer share of its remaining life, so lenders price in more risk. The gap widens as the score falls: about 2 points between new and used for super prime, more than 5 points for subprime. That is why a near-prime buyer is often better off with a new vehicle carrying a manufacturer rate than with a used one at the market rate, even at a higher price.
What moves your rate besides the score
- Down payment. Ten to twenty percent down lowers the loan-to-value ratio and often moves you a tier.
- Term. A 48- or 60-month loan carries a lower rate than 72 or 84 months, and far less total interest.
- Vehicle age and mileage. Lenders cap the age and miles they will finance and charge more near the cap.
- Debt-to-income. Lenders look at your monthly obligations against your income, not just the score.
- Manufacturer programs. Chrysler Capital and Stellantis Financial offers on new Jeep, Ram, Dodge and Chrysler vehicles can undercut any bank rate for qualified buyers.
- A co-signer. A prime co-signer can bring a near-prime application into prime pricing.
Before you apply
Pull your own credit reports (free at the three bureaus), dispute errors, and pay down revolving balances; utilization moves a score quickly. Apply within a two-week window so the inquiries count once. Then apply online; our finance team shops your application to multiple lenders and shows you the options. If your credit has had problems, our challenged credit center works with lenders who specialize in rebuilding. The CFPB's auto loan tools explain what to compare on any offer.
Frequently asked questions
What credit score do you need to buy a car?
There is no minimum. A score of 661 or higher is prime and gets the best rates; 601 to 660 is near prime; below 600 is subprime, where loans are available at higher rates with a larger down payment.
What is a good interest rate on a car loan right now?
Anything at or below the average for your tier. In Q2 2026 that was 4.41 percent new for super prime, 6.15 percent for prime and 9.71 percent for near prime, per Experian.
Can I finance a car with a 600 credit score?
Yes. A 600 score sits at the top of the subprime tier, where the Q2 2026 average was 13.52 percent on new cars. A down payment and a shorter term help, and manufacturer programs may apply on a new vehicle.
Does applying at a dealership hurt my credit?
A hard inquiry lowers a score by a few points. Scoring models count multiple auto inquiries in a 14- to 45-day window as one, so shopping several lenders through the dealer in one visit does not stack.
Is it better to get financing from a bank or the dealer?
Compare both. Dealers can access manufacturer rates and multiple lenders at once; a pre-approval from your bank or credit union gives you a rate to beat.
Find out where you stand
Our finance application takes a few minutes and does not commit you to anything. We work with lenders across every credit tier.
Sources
Rates from Experian's Q2 2026 State of the Automotive Finance Market as published September 10, 2026, checked on October 19, 2026. Not a credit offer; your terms depend on the lender and your application.
- Average Car Loan Interest Rates by Credit Score (updated Sept. 10, 2026; Q2 2026 data), Experian
- Auto loans: consumer tools, Consumer Financial Protection Bureau