Not at all! The market offers a wide range of options for first-time buyers, no matter your credit score or lending experience.

There are a few things you should know before you fill out any loan applications. First of all, lending eligibility isn’t really based on age. Many first-time buyers are young people, but others could be newcomers to the U.S. who have yet to build their credit. If you have little to no credit history and no previous auto loan, lenders will consider you a first-time buyer.

If you fall into the first-time buyer category, you’ll be pleased to know that you have lots of options! You can obtain a car loan from your bank or credit union, many of which offer special loans for first-time buyers. Your local dealership will also offer its own financing department, which will have a lot of experience securing loans for first-time buyers.

At Lafayette Ford, we can provide options tailored to customers’ unique needs. We’ll work to get you approved, whatever your current financial situation.

You can obtain a vehicle loan with any credit score! However, you can take steps to improve your lending options.

For starters, you should review your credit report. Request your free annual copy of your credit report from one of the major credit bureaus: TransUnion, Equifax, and Experian. From there, make sure it doesn’t include any errors, such as accounts that aren’t actually yours or late payments that weren’t actually late. Taking the time to correct inaccuracies will improve your credit score!

Once you have your credit report in hand, you’ll also know your credit score. Since your credit score is so intertwined with available lender interest rates, it’s something you need to know going in. (Alternatively, you can view your credit score using third-party apps like Credit Karma.)

Next up, we’ll take a closer look at how your credit score will match up with potential interest rates.

Each case is different! The lending market is competitive, and your credit score does matter. The higher your credit score, the more likely you’ll be able to obtain a loan with a lower APR, meaning you spend less money on interest. However, since each lender operates according to their own rules, we can only estimate what your APR will be like with a particular credit score.

First-time buyers starting from zero or a deep subprime score (from 300 to 500) typically pay an average APR of 13.42 percent for a new vehicle and 20.62 percent for a used model. Subprime buyers (with credit scores between 501 and 600) will pay an average of 10.79 percent APR on a new vehicle and 17.46 percent on a used one.

With a non prime (601 to 660) credit score, you’ll fare a little better. The average APR for a first-time nonprime buyer is 8.12 percent for a new car and 12.08 percent for a used model.

Finally, as a prime (661 to 780) first-time buyer, you’ll see an average APR of 5.92 percent on a new car and 7.83 percent on a used car. Superprime (781 to 850) buyers see the best rates, with an average APR of 4.75 percent for new car loans and 5.99 percent for used car loans.