Your credit score directly impacts your Annual Percentage Rate (APR). Higher scores lead to significantly lower total interest paid over the life of the loan. Credit Tier Score Range New Car Avg. APR Used Car Avg. APR 4.66% – 5.18% 6.82% – 7.70% Prime 6.27% – 6.70% 9.06% – 9.98% Nonprime 9.57% – 9.83% 13.74% – 14.49% Subprime 13.08% – 13.22% 13.74% – 19.42% Deep Subprime 15.75% – 16.01% 21.58% – 21.85% [Source: CNBC, Bankrate, US News] Key Factors Beyond Your Score
: Lenders evaluate your ability to afford monthly payments relative to your gross income, often preferring a DTI below 36%. typical credit score to buy a car
Lenders often maintain higher standards for new car loans compared to used car loans. : The average score is approximately 753–754 . Used Car Loan : The average score hovers around 689–691 . Interest Rates by Credit Tier (April 2026) Your credit score directly impacts your Annual Percentage
: A larger down payment can offset a lower credit score by reducing the lender's risk. APR Used Car Avg
: Many lenders use this industry-specific version of your score, which ranges from 250 to 900 and prioritizes your past history with vehicle payments.