 TITLE: Are More Drivers Financing New or Used Cars? CONTENT: New vs. Used Auto Loans by Credit Score\n---------------------------------------\nThe automotive report also revealed differences in the credit scores for consumers financing used cars versus those financing used cars. Average credit scores for buyers of new cars were in the low 700s during the second quarter, while average credit scores for buyers of used cars ranged from the low to high 600s. In both categories, average credit scores are generally on the rise.\nSource: Experian State of the Automotive Finance Market\nSource: Experian State of the Automotive Finance Market Report\nNow that you've digested all of that information, you might be wondering: What's a good credit score for an auto loan, and what's the lowest credit score possible? Unfortunately, there's no clear answer.\nLenders use several credit scoring models to determine whether you'll be approved for an auto loan, and what the interest rate and other terms will be. However, the better your credit score is, the better your odds of being approved will be. Also, you stand a better shot at favorable terms if you have a credit score that's desirable in the eyes of the lender.\nEven if you have what's considered a low credit score, you very well could be approved for an auto loan. Standards vary from lender to lender. There's no set cutoff point between a credit score that'll lead to an approval of your loan application and a credit score that'll lead to rejection of your application. Of course, a higher score tends to result in a lower interest rate and other favorable terms.\nThe Experian report analyzed the creditworthiness of borrowers who finance used and new vehicles. Credit score ranges can vary based on the scoring model, the lender, the type of loan and other factors. For this report, Experian defined the ranges as follows:\n**Super prime**: 781-850  \n**Prime**: 661-780  \n**Nonprime**: 601-660  \n**Subprime**: 501-600  \n**Deep subprime**: 300-500\nExperian found that most new car financing is done by those with the highest (prime or better) credit scores, while nonprime and subprime buyers make up a combined 46.9% of used car loan borrowers. Subprime loans for new cars are at an eight-year low, according to the Experian report. END