What Is A Decent Credit Score To Buy A Car Direct

has a "prime" credit score in the 700s . Because of this, Alex secures an interest rate of roughly 6.27% . Over the life of the loan, Alex will pay about $5,500 in total interest.

has a "subprime" score in the 500s . Although Jordan still manages to find a lender, the interest rate jumps to approximately 19.42% . Jordan ends up paying roughly $11,400 in interest—more than double what Alex paid for the exact same car. Credit Score Ranges and Their Impact (as of April 2026) what is a decent credit score to buy a car

Lenders use your score to determine how much of a risk you are. Higher scores lead to lower Annual Percentage Rates (APR). Credit Category Score Range Avg. New Car APR Avg. Used Car APR 4.66% 7.70% Prime 6.27% 9.98% Nonprime 9.57% 14.49% Subprime 13.17% 19.42% Deep Subprime 16.01% 21.85% has a "prime" credit score in the 700s

Imagine two friends, Alex and Jordan, both looking to buy a used sedan priced at $20,000 with a five-year loan term in April 2026. has a "subprime" score in the 500s

A decent credit score for buying a car is generally considered to be , which falls into the "prime" category. While there is no official universal minimum, this threshold is where approximately 69% of financed car deals occur. The Tale of Two Car Buyers: Alex and Jordan