A credit score of 660 or up should get you a car loan at a good interest rate, and lower scores can still qualify. It also found that, on average, the credit score needed for a used-car loan was 657 while the average credit score needed for a new-car loan was 721.

Why is it easier to buy a new car with bad credit?

You’re more likely to get financed for a used car than a new one if you’re a bad credit borrower, simply because you’re likely to get approved for a payment that fits better with used vehicle prices. New vehicles generally drop in value by 20% or more within the first year, and at least 10% in the next two years.

Can you finance a brand new car with bad credit?

Though it may seem impossible to get a loan with bad credit, the good news is—it’s not. There’s no minimum credit score required to get an auto loan, which means people with poor credit may just need to find the right lender or loan in order to get behind the wheel.

What do you need to know about buying a car with bad credit?

Get a copy of your credit report. Do this before apply for a car loan. If you’re new to the world of credit, know that a credit report is different from a credit score. Your credit score is the number. Your report is a summary of your financial history (your credit score actually doesn’t even appear anywhere on the report).

What should my credit score be to get a car loan?

Typically, a credit score of 700 or higher will put you in a good position to find favorable auto loan terms. If your credit score is lower, you’ll probably be offered a higher interest rate. And the lower it is, the more you’re likely to pay. If your credit score is very poor—less than 450—then you may not be able to get a car loan. 1 

What’s the average interest rate for a car with bad credit?

Unfortunately, there’s no straightforward answer, because there are always places you can go. Bad credit is anything below the mid 600s, the average is 650-720, and excellent credit is 720-850. Just about any place will give you a loan if you have at least a 650 or above. You’ll pay a higher interest rate than you would if you had excellent credit.

Do you need a loan to buy a new car?

Most buyers need to take a loan out when they purchase either a new or used vehicle. Your credit score is one of the most important criteria lenders consider when deciding whether to loan you money and what terms and interest rate to offer.