Lenders use your credit history to decide what car loan rates to offer you. Here are average rate offers for car loans in the LendingTree marketplace.
| Credit score range | Average new car APR | Average used car APR |
|---|---|---|
| Excellent (800+) | 7.26% | 7.20% |
| Very good (740-799) | 7.47% | 6.92% |
| Good (670-739) | 8.88% | 8.12% |
| Fair (580-669) | 19.75% | 12.00% |
| Poor (under 580) | 22.55% | 21.61% |
Source: Average of over 225,000 offers for 60-month loan terms of at least $5,000 made to customers on the LendingTree platform for the purchase of cars and light trucks in the second quarter of 2025.
Despite economic uncertainty over tariffs, auto loan interest rates have remained stable in 2025.
Here are average auto loan rates for loans closed and funded through the LendingTree marketplace by credit tier:
LendingTree chief consumer finance analyst |
“Don’t take the first car loan offer you find. Even with bad credit, you can benefit from comparing offers from multiple lenders. Temper your expectations around those loans, of course. With crummy credit, you’re not going to get that sweetheart deal you’re hoping for. However, shopping around can still help you save money.” |
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5.75%
24 to 72 months
$500 - $100,000
No minimum credit score
CarMax sells used cars online and in-person at more than 250 stores. As CarMax’s in-house financing arm, CarMax Auto Finance is only available at CarMax dealerships.
CarMax offers some great perks for car buyers. One of them is its 3-Day Payoff Program. If a competitor offers you a cheaper rate within three days of your car purchase, you can back out of your CarMax loan with no extra fees. Plus, you could get your car delivered to your home for free if you live within 60 miles of a CarMax dealership in certain areas.
Since CarMax only sells used cars, a new car is off the table.
CarMax does not have a minimum credit score requirement, but you can only use a CarMax loan to buy a car from a CarMax store.
CarMax does business in 41 states. There are no CarMax stores in:
5.49%
36 to 84 months
$7,500 - $100,000
460
If you want to refinance your car loan with bad credit, consider OpenRoad Lending . OpenRoad’s credit requirements are some of the lowest you’ll find, and you can boost your odds of approval by applying with a co-borrower. Plus, borrowers on the LendingTree marketplace give OpenRoad high marks for customer satisfaction.
OpenRoad only offers car loan refinancing, so you can’t work with OpenRoad to borrow money to buy a car. And if you need to refinance fast, consider other car loan refinancing lenders — OpenRoad’s funding timeline is on the slow side.
To refinance your car loan with OpenRoad, you must meet the following requirements:
5.36%
24 to 84 months
Starting at $4,000
500
If you’re looking to buy a new or used car at a traditional dealership, check out Capital One. Capital One’s Auto Navigator tool allows you to find cars at local dealerships and check your rates at the same time.
Capital One only requires a minimum credit score of 500. However, you can only use Capital One auto loans at select partner dealers.
Capital One requires a credit score of at least 500. The following vehicles are ineligible for financing:
4.85%
24 to 96 months
$2,500 - $100,000
580
If you need to stretch out your payments on a new or used car, consider working with Autopay. In addition to extra-long car loan repayment terms, Autopay also offers prequalification. This allows you to see your potential rates with no impact on your credit score. Plus, while other loans only allow you to buy from a dealership, Autopay lenders offer loans for private party purchases.
Know that Autopay won’t directly fund your car loan — it partners with lenders who offer car loans. And some of those lenders charge fees of up to $400, so you may need to shell out some extra cash to pay for fees.
Autopay connects borrowers to partner lenders and financial institutions. These partners all have different eligibility requirements.
To use the marketplace, you and the vehicle you’re financing must meet the requirements below:
Stacey B.
I filled out my application online and within minutes I was contacted with an approval amount. The whole process was easy and I received funding on the same day.
Ramona
It's my second time using Lending Tree and it's the best experience. Fast, convenient, reliable and best rates ever.
Donna Rickard
I appreciated that numerous loan options were listed including the number of years and the interest rate as well as what the payment would be. This helped me decide what direction I wanted and needed to select.
Take two minutes to tell us who you are and how much money you’ll need. We’ll take care of the rest. It’s free, simple and secure.
We’ll send you offers from up to five trusted lenders. Compare your offers side by side to see which one will save you the most money.
Choose a lender, sign your loan paperwork and take off in your new ride.
We look for lenders with fewer barriers to approval and award points for lower credit requirements, nationwide access, fast funding and simple applications.
We prioritize lenders that offer low starting rates, minimal fees, flexible terms and APR discount opportunities.
We choose lenders with strong reputations, convenient self-service tools, responsive support and borrower-friendly perks.
We reviewed nearly 50 auto lenders to determine the overall best four bad credit car loan lenders. To make our list, lenders must offer auto loans to borrowers with credit scores 580 and below. According to our systematic rating and review process, the best bad credit car loans come from CarMax, OpenRoad, Capital One and Autopay. LendingTree reviews and fact-checks our top lender picks on a monthly basis.
Senior managing editor and Certified Financial Education Instructor℠ |
“Our writers and editors dig through the facts, contact lenders directly and even go through the application process ourselves if it helps better explain what you can expect. As a Certified Financial Education Instructor℠, I’m committed to breaking down complex financial details so people can make confident, informed decisions with their money.” |
Jessica’s experience in editing and financial education helps shape LendingTree articles that are clear, accurate and truly useful to readers. Her certification means our recommendations are built on a foundation of consumer-first financial knowledge — not just numbers.
It’s possible to get a car loan with a 500 credit score, but the lender might have other requirements, too. You might also need to earn a certain amount of money or have been at your job for a specific length of time.
The best way to see if you qualify for an auto loan is to prequalify. It doesn’t require a hard credit hit, so prequalifying won’t negatively impact your credit.
Most approved borrowers have credit scores of 661 or higher, but there is no standard credit score for buying a car. Some lenders don’t require a specific credit score at all.
But the easier it is to get a loan, the more expensive that loan will probably be. Even if you have bad credit, shop around and compare offers to find the loan that’s best for you.
Yes, zero-down bad-credit car loans exist, but this route comes with big risks, such as finding yourself with an upside-down car loan. Instead, take the time to build up your credit and save up for a down payment.
In the first quarter of 2025, borrowers with a credit score from 300 to 500 received an average new car loan rate of 15.81% and an averaged used car loan rate of 21.58%, according to Experian’s State of the Automotive Finance Market report.
During that same time period and according to the same report, borrowers with a credit score from 501 to 600 received an average new car loan rate of 13.22% and an average used car loan rate of 18.99%.
To get a more specific idea of the rates you could receive, prequalify with multiple lenders.
Yes, buy here, pay here dealerships work with bad-credit borrowers. However, they can come with predatory rates and extra fees, so these types of companies are best avoided.
“Tariffs are likely to make car prices go higher, in large part because the cost of producing the pieces that make up that car will go higher,” says Matt Schulz, LendingTree chief consumer finance analyst. “Anyone shopping for a new or used car in the second half of 2025 should expect to pay higher prices when they buy.”
According to a LendingTree survey, more than 3 in 4 (77%) Americans worry that tariffs will increase the cost of owning a car. Among those worried, 40% plan to drive less as a result.
