What Credit Score is Needed to Finance a Car?

Many people in the Darlington and Sumter areas have taken hits to their credit ratings in recent years. If you’re one of them, you might wonder what credit score is needed to finance a car at Mercedes-Benz of Florence. Like many dealerships, our finance department will gladly work with drivers to find bad credit car finance options that fit their budgets and can help them rebuild their credit. Get more information on the credit score to finance a car, and what you can expect from Mercedes-Benz of Florence.

Average Necessary Credit Score to Finance a Car

When we look at bad credit car finance, we start with the average credit scores of drivers who got auto loans in 2022, and the most recent figures available. According to Experian credit bureau, 69 percent of auto loans went to buyers with credit scores over 661. We can break that down to the average credit score for pre-owned auto loans was 690, while new car buyers had an average credit score of 735. Both of these credit scores fall into the “prime” category, which is the second-from-best credit score tier: 

• Superprime: 781 to 850
• Prime: 661 to 780
• Non-prime: 601 to 660
• Subprime: 501 to 600
• Deep Subprime: 300 to 500

So, what credit score is needed to finance a car? While most buyers have prime or superprime credit scores, there are still options for bad credit car financing.

How to Get Car Financing With Bad Credit

What if you don’t have the credit score to finance a car? First, don’t make assumptions that bad credit car finance isn’t available to you. There are options in Marion and Florence that can get drivers into the cars they need. Here are some things you can do to increase your chances of getting car financing with bad credit:

• Focus on Positives: Even if your credit score isn’t up to the prime level if you’ve been making improvements in your score by building a record of consistent payments, it shows that you’re actively rebuilding and doing the necessary work to get your finances back on track. Lenders like this. 
• Bring Proof: Lenders are also more comfortable working with borrowers who have proven sources of income and can demonstrate that they’re living within their means. To do this bring pay stubs, proof of employment, utility and cell phone bills with paid balances, and auto insurance documents with you. 
• Show Collateral: If you own your home or can make a down payment of at least 25 percent, you’re more likely to qualify for an auto loan. 

While these factors can help you get loan approval, you’ll likely still have a higher interest rate than borrowers with better credit scores. If your credit score continues to improve after you’ve purchased your vehicle, you can refinance your loan and possibly get a better interest rate. 

Learn More About the Car-Buying Process with Mercedes-Benz of Florence 

If you have questions about what credit score is needed to finance a car, or other car-buying issues, contact Mercedes-Benz of Florence. Our finance team can help! You can also get more car-buying instructions when you visit our car-buying hub.