: In most states, bad credit also leads to higher car insurance rates. Strategies for Buying with Lower Credit

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

Data based on reports from Experian and WalletHub for Q4 2025/2026.

: A borrower with a score in the 500s might pay over $11,400 in interest on a $20,000, five-year loan—more than double the $5,500 paid by someone with a score in the 700s.

Do You Need Good Credit To Buy A Car -

: In most states, bad credit also leads to higher car insurance rates. Strategies for Buying with Lower Credit

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 do you need good credit to buy a car

Data based on reports from Experian and WalletHub for Q4 2025/2026. : In most states, bad credit also leads

: A borrower with a score in the 500s might pay over $11,400 in interest on a $20,000, five-year loan—more than double the $5,500 paid by someone with a score in the 700s. Credit Rating Score Range Avg