Yes, you can get a car with a 600 credit score, which falls into the subprime credit category. However, you should expect significantly higher interest rates and may face more stringent loan terms compared to a borrower with good or excellent credit. The key is to be prepared, shop strategically, and understand the total cost of the loan to avoid financial strain.
Your first step should be to check your credit report for free at AnnualCreditReport.com. Dispute any errors, as correcting even a small mistake can boost your score. Next, focus on saving for a substantial down payment. A down payment of 15-20% or more reduces the lender's risk and can help you qualify for a better rate. It also prevents you from being upside-down on the loan (owing more than the car's value) immediately.
Explore all your financing options. Start with a credit union, as they are often more flexible with members than large banks. Get pre-approved before visiting a dealership to know your budget. Be cautious of "buy here, pay here" lots; while they approve almost anyone, their interest rates are extremely high, and the vehicles may be unreliable.
Finally, keep the loan term as short as you can afford. A 72-month loan might have a lower monthly payment, but you'll pay far more in interest over time. Consider a less expensive, reliable used car to keep the total loan amount down.
| Loan Scenario | Credit Score Range | Estimated APR (New Car) | Estimated Monthly Payment* | Total Interest Paid* |
|---|
| Excellent Credit | 781-850 | 5.5% | $478 | $2,191 |
| Good Credit | 661-780 | 7.5% | $501 | $3,060 |
| Subprime (Your Range) | 601-660 | 11.5% | $550 | $6,021 |
| Deep Subprime | 501-600 | 17.5% | $598 | $9,540 |
| Example based on a $25,000 loan amount for a 60-month term. Rates are estimates and vary by lender. | | | | |
