A 650 credit score puts you in the “fair credit” or “average credit” or “non-prime/near-prime” zone, meaning you’re definitely not going to get the best interest rates on an auto loan. However, you won’t be getting the highest interest rates.
The interest rates for car loans can vary depending on the economic conditions. This means that the rate you will get for your 650 credit score does not guarantee what it will be. You might get a different rate today than you did last year.
- A 650 score auto loan rate is approximately 6.51% for new cars, and 10.33% for used cars. *
You can lower your rate by making a shorter term or putting down a larger deposit
These rates are for auto loans with terms between 5 and 6 years. They can also be referred to as 60-month auto loans or 72-month auto loans. You may be able find lower rates if your loan term exceeds 5 years.
Your interest rate can be reduced if you have a significant down payment relative to the cost of the car. This is because your down payment shows that you are committed to repaying the loan. You might be tempted to take out $0-down auto loans, but the interest rates will often be higher, especially if you have a low credit score of 650.
Rates are trending lower
If we look back at the last quarter, the auto loan interest rates for Quarter 2 2020 for “near prime credit scores of 650” were 7.14% for new vehicles and 11.41% respectively for used cars. This indicates that there has been a substantial drop in rates since mid-2021.