What credit score do you need to buy a car?

Each lender sets its own minimum, so you can often get an auto loan with a low score, but the rate rises as the score falls. In Experian's Q2 2026 data the average new-car rate was 4.41% for scores of 781 or above and 16.11% for scores of 300 to 500.

How much does credit score affect car payment?

Experian's Q2 2026 averages put the monthly payment on a new car at $741 for super prime borrowers and $816 for near prime borrowers. On a $35,000 loan over 72 months, the difference between the 4.41% and 16.11% average new-car rates is about $207 a month.

What is the average car payment in 2026?

Experian reports an average new-car payment of $765 and an average used-car payment of $542 in Q2 2026, with average loan amounts of $43,610 and $27,852. These vary with credit score, loan term and vehicle price.

Can I get a car loan with a 500 credit score?

Often yes, but at a high rate. Experian's Q2 2026 average for the 300 to 500 tier was 16.11% on new cars and 21.62% on used cars, and the 501 to 600 tier averaged 13.52% and 19.10%. You may need a larger down payment, and some buy-here-pay-here dealers work with very low scores at a much higher total cost.

Average Car Payment by Credit Score (2026 Data)

How Credit Score Affects Your Car Payment

Your credit score is one of the most important factors determining your auto loan rate. Here’s how rates and payments vary by credit tier, using Experian’s Q2 2026 averages (VantageScore 4.0 tiers). These are averages across lenders, not offers.

Average Auto Loan Rates and Payments by Credit Score

Credit Score	Credit Tier	New Car Rate	New Car Payment	Used Car Rate	Used Car Payment
781 or above	Super Prime	4.41%	$741	6.29%	$534
661-780	Prime	6.15%	$770	8.81%	$528
601-660	Near Prime	9.71%	$816	13.93%	$555
501-600	Subprime	13.52%	$805	19.10%	$567
300-500	Deep Subprime	16.11%	$779	21.62%	$570

Experian’s overall averages for Q2 2026 were a 6.35% rate and $765 payment on new-car loans, and an 11.19% rate and $542 payment on used-car loans. Lower-tier borrowers do not always have higher payments in this table because they tend to finance different vehicles, smaller amounts and longer or shorter terms.

Monthly Payment Comparison

These examples hold the loan amount and term the same and change only the rate, so they isolate what the rate costs.

New Car: $35,000 Loan, 72 Months

Credit Tier	Rate	Monthly Payment	Total Interest	Total Cost
Super Prime	4.41%	$554	$4,898	$39,898
Prime	6.15%	$583	$6,942	$41,942
Near Prime	9.71%	$643	$11,317	$46,317
Subprime	13.52%	$712	$16,281	$51,281
Deep Subprime	16.11%	$761	$19,816	$54,816

Difference: $207/month between the best and worst tier

Used Car: $25,000 Loan, 60 Months

Credit Tier	Rate	Monthly Payment	Total Interest	Total Cost
Super Prime	6.29%	$487	$4,202	$29,202
Prime	8.81%	$517	$5,999	$30,999
Near Prime	13.93%	$581	$9,848	$34,848
Subprime	19.10%	$650	$13,993	$38,993
Deep Subprime	21.62%	$685	$16,105	$41,105

The Real Cost of Bad Credit

Total Interest Paid Over Loan Life

Loan Amount	4.41% (Super Prime new)	9.71% (Near Prime new)	16.11% (Deep Subprime new)
$20,000 (60 mo)	$2,323	$5,326	$9,252
$30,000 (72 mo)	$4,199	$9,701	$16,985
$40,000 (72 mo)	$5,598	$12,934	$22,647

How to Get a Better Rate

Before Applying

Action	Why It Helps
Check and dispute credit errors	Inaccurate items can lower your score
Pay down credit card balances	Lower utilization can raise your score
Pay off collections	Fewer negative items on your report
Avoid new credit applications before the loan	Fewer hard inquiries

When Shopping

Strategy	Benefit
Get pre-approved before visiting dealer	Know your rate; negotiating power
Apply at multiple lenders in a short window	Rate-shopping inquiries for the same kind of loan are generally treated together by scoring models
Consider credit unions	Include them in your quotes
Bring proof of income/residence	Faster approval

After Approval

Strategy	Benefit
Make on-time payments, then check refinance offers	A higher score may qualify for a lower rate
Set up autopay	Never miss payment
Pay extra toward principal	Reduce interest paid

Impact of Loan Term on Payments

$30,000 Loan at 8% Interest (illustrative rate)

Term	Monthly Payment	Total Interest	Total Cost
36 months	$940	$3,843	$33,843
48 months	$732	$5,155	$35,155
60 months	$608	$6,498	$36,498
72 months	$526	$7,872	$37,872
84 months	$468	$9,277	$39,277

Note: Longer terms mean lower payments but more interest paid

Key Takeaways

Credit score dramatically affects your rate — Experian’s Q2 2026 new-car averages ran from 4.41% to 16.11%
Poor credit costs thousands more per car — on a $35,000, 72-month loan the gap between the best and worst tier is $14,918 in interest
Get pre-approved first — Know your rate before negotiating
Compare credit unions and other lenders — Don’t only rely on dealer financing
Shorter terms save interest — but raise the monthly payment
A larger down payment lowers the amount financed — which can help with approval and total cost

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy