“Expert verified” means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced.
Bankrate is always editorially independent. While we adhere to strict , this post may contain references to products from our partners. Heres an explanation for . Our is to ensure everything we publish is objective, accurate and trustworthy. Bankrate logo
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts, who ensure everything we publish is objective, accurate and trustworthy.
Our loans reporters and editors focus on the points consumers care about most — the different types of lending options, the best rates, the best lenders, how to pay off debt and more — so you can feel confident when investing your money. Bankrate logo
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo
Buying a new car is an exciting experience. However, with the average price of a new vehicle approaching $50,000 in 2022, it’s a major financial decision that requires careful planning and consideration. One of the most important factors that will determine whether you can qualify for an auto loan, and how much you’ll pay in interest, is your credit score
Why Your Credit Score Matters When Buying a Car
Your credit score gives lenders an indication of how likely you are to repay debts. In general the higher your score the lower your interest rate will be on a car loan. This translates into thousands of dollars in savings over the life of the loan. With good credit, you’ll also likely qualify for the best loan terms and have more negotiating power when working with dealerships.
For a $50,000 vehicle, even small differences in your interest rate can make a big impact. For example, with a 60-month loan:
- At 3% APR, you’d pay $53,758 total with a monthly payment of $896.
- At 6% APR, you’d pay $57,235 total with a monthly payment of $954.
That’s an extra $3,477 in interest for the borrower with a higher rate!
What is Considered a Good Credit Score?
There is no single minimum credit score required by lenders, but here are general guidelines:
- Excellent credit: 780-850
- Good credit: 670-739
- Fair credit: 580-669
- Poor credit: Below 580
For the best terms on a $50,000 car loan, you’ll generally want a score of 700 or above. However, scores between 640 to 699 may still qualify for financing, likely at a higher interest rate.
Anything below 640 and you may have trouble getting approved without a large down payment or cosigner with better credit. Some lenders may not finance scores under 600.
Average Auto Loan Rates by Credit Score
Here are the average interest rates currently available on 4-year car loans by credit score range:
| Credit Score | APR |
|---|---|
| 781+ | 4.21% |
| 721-780 | 5.36% |
| 661-720 | 7.07% |
| 601-660 | 11.37% |
| 500-600 | 15.29% |
Rates are averages and may vary by lender. Your individual rate will depend on other factors besides your credit score.
As you can see, borrowers with excellent credit (781+) can qualify for rates around 4%, while subprime borrowers pay over 15%. That’s a huge difference amounting to thousands in extra interest charges.
How Much Will You Pay for a $50,000 Loan?
Let’s see the dollar impact on total interest paid for a $50,000, 60-month new car loan at different credit score levels:
| Credit Score | Interest Rate | Total Interest |
|---|---|---|
| 781+ | 4% | $2,811 |
| 720 | 6% | $5,194 |
| 680 | 8% | $7,813 |
| 640 | 10% | $10,688 |
| 600 | 14% | $16,862 |
It’s clear that maintaining a good credit score of 720+ and getting pre-approved before visiting dealerships can save you significant money. With a score under 640, expect much higher rates that make financing very expensive.
What’s the Minimum Down Payment on a $50,000 Auto Loan?
In addition to higher rates, borrowers with lower credit scores usually need to make a larger down payment. This lowers the lender’s risk by reducing how much you need to finance.
Here are typical minimum down payment requirements based on credit score:
- Excellent credit: 0% down
- Good credit: 5% down
- Fair credit: 10% down
- Poor credit: 20% down or more
With excellent credit, you may qualify for 0% down offers, while fair or poor credit often requires 10-20% down.
For a $50,000 vehicle purchase price:
- 0% down is $0
- 5% down is $2,500
- 10% down is $5,000
- 20% down is $10,000
Making a larger down payment upfront, if possible, is always a smart move to reduce interest fees.
What Steps Can You Take to Improve Your Credit?
If your credit score is under 700, it pays to wait and work on boosting your credit before applying for a car loan. Here are some tips:
- Pay all bills on time each month
- Pay down credit card and other debt balances
- Limit new credit applications
- Check credit reports for errors
- Become an authorized user on someone else’s account
With diligent credit management, you can increase your scores significantly in under a year. It takes patience but will save you money over the long run.
Getting Pre-Approved for Better Loan Terms
Rather than accept dealer financing on the spot, get pre-approved by your bank, credit union or an auto lender before visiting dealers. Pre-approval locks in an interest rate and shows dealers you’re a serious buyer. That gives you stronger negotiating power to get the best possible deal. With pre-approval, you also avoid impulsive decisions and won’t be pushed into a rate or payment you can’t actually afford.
The Bottom Line
A higher credit score earns you lower interest rates and more choice in lenders for a $50,000 car purchase. Excellent credit of 720+ gets you the best loan terms, while fair or poor credit under 640 will be much more challenging. Improving your credit score before applying for an auto loan will save you significant money. Getting pre-approved also improves your rate and negotiating strength with dealers. Know your credit score and maintain diligent financial habits, and you’ll be in a great position to get an affordable loan for the car of your dreams.
How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.
Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.
We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.
Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range, can also impact how and where products appear on this site. While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service.
- There is no minimum credit score required to buy a car, but most lenders have minimum requirements for financing.
- Most borrowers need a FICO score of at least 661 to get a competitive rate on an auto loan.
- If you have a low credit score, you may still qualify, but you should consider building your score before you start searching for loans.
Before you head to the dealership, consider how your credit score will affect how much you are able to spend. Lenders use your credit score as an indication of how likely you are to repay a loan. This means that the higher your credit score, the more favorable your interest rate and terms will be.
In general, you’ll need a FICO credit score of at least 661 to qualify for a traditional auto loan, although there are lenders that offer bad credit auto loans. Because interest rates remain high, securing a subprime auto loan may be more difficult — and while it is possible, expect to pay a premium.
How We Make Money
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.
- • Auto Loans
- • Personal loans
Calendar Icon 4 Years of experience Rebecca Betterton, a Certified Financial Education Instructor℠, is a writer for Bankrate who has been reporting on auto loans since 2021.
- • Auto loans
- • Personal loans
Calendar Icon 8 Years of personal finance experience Kellye Guinan is an editor and writer with over seven years of experience in personal finance.
- • Social Impact Entrepreneurship
- • Economic & Public Policy
Emmanuel Nyame is a member of Bankrate’s Financial Review Board and the CEO of Twelvenets, where he leads campaigns that drive community and economic growth.
At Bankrate, we take the accuracy of our content seriously.
“Expert verified” means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced.
Their reviews hold us accountable for publishing high-quality and trustworthy content.
Bankrate is always editorially independent. While we adhere to strict , this post may contain references to products from our partners. Heres an explanation for . Our is to ensure everything we publish is objective, accurate and trustworthy. Bankrate logo
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts, who ensure everything we publish is objective, accurate and trustworthy.
Our loans reporters and editors focus on the points consumers care about most — the different types of lending options, the best rates, the best lenders, how to pay off debt and more — so you can feel confident when investing your money. Bankrate logo
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo
How Much Car Can You Really Afford? (By Salary)
FAQ
What credit score do you need for a 50k car?
While it’s possible to get an auto loan with nearly any credit score, most lenders are looking for buyers in the prime credit score range with a credit score of 661 or above for the best terms and rates. There’s no minimum credit score required to get an auto loan.
How much should you put down for a $50,000 car?
A down payment between 10 to 20 percent of the vehicle price is the general recommendation. But if you can afford a larger down payment, you can save even more money on interest payments over the life of the loan. By dropping the amount financed, you save some even before you start negotiating the car price.
Can I get a $40,000 car with a 600 credit score?
In general, you’ll need a FICO credit score of at least 661 to qualify for a traditional auto loan, although there are lenders that offer bad credit auto loans. Because interest rates remain high, securing a subprime auto loan may be more difficult — and while it is possible, expect to pay a premium.
What credit score do I need for a $50,000 loan?
What is a good credit score for a new car?
For new auto loans, most borrowers have scores of around 730. The minimum credit score needed for a new car may be around 600, but those with excellent credit often get lower rates and lower monthly payments. Lower credit scores may result in less-than-favorable loan terms for the car you want to buy.
What credit score do you need for a car loan?
Most used auto loans go to borrowers with minimum credit scores of at least 675. For new auto loans, most borrowers have scores of around 730. The minimum credit score needed for a new car may be around 600, but those with excellent credit often get lower rates and lower monthly payments.
Can you get a car loan with a 650 credit score?
Yes, it’s possible to get a car loan with a 650 credit score, though your rates might not be as good as those for an applicant with better credit. If you shop around and aren’t happy with the interest rates you’re quoted, you might consider working on your credit before taking out a loan. How does an auto loan impact my credit score?
Can you get a car loan with a 660 credit score?
Most approved borrowers have credit scores of 661 or higher, but there is no set score to get an auto loan. Having a credit score below 660 could make it harder and more expensive — though not impossible — to finance your car. Here is what you need to know about auto loan credit scores and how to increase your score to get a better rate.
Should I check my credit score before buying a car?
If you’re considering buying a new or used car on credit, check your credit score before approaching a lender or car dealership. While there’s no one-size-fits-all credit score required to buy a car, understanding your score can help you secure the most favorable terms for your auto loan.
Can a low credit score get a car loan?
Most borrowers need a FICO score of at least 600 to get a competitive rate on an auto loan. If you have a low credit score, you may still qualify – but you should consider building your score before you start searching for loans. Before you head to the dealership, consider how your credit score will affect how much you are able to spend.