GITNUX MARKETDATA REPORT 2024

Statistics About The Average Down Payment On A Car With No Credit

The average down payment on a car with no credit is typically around 10-20% of the car's total price.

Last Updated: June 20, 2024

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In this post, we will explore various statistics related to car down payments, credit scores, loan terms, and financing trends. From the impact of credit scores on down payments to the average loan amounts and terms for new and used cars, we will delve into key insights that can help individuals navigate the car buying process effectively. Stay tuned to learn more about the factors influencing car loan decisions and the financial implications of purchasing a vehicle with no credit history.

Statistic 1

"People with lower credit scores usually need to make a larger down payment on a car"

Statistic 2

"20% of the car’s price is considered a good down payment for those with no credit"

Statistic 3

"Buyers with low credit scores often pay interest rates around 10% to 14%"

Statistic 4

"The average term of a new car loan is 67 months and 63 months for used cars"

Statistic 5

"The average credit score required for a car loan is 711 for new cars and 656 for used cars"

Statistic 6

"The average monthly car payment for new cars is $554 and $391 for used cars"

Statistic 7

"36% of auto loans for new cars are for 73 to 84 months long"

Statistic 8

"86.3% of new car purchases and 55.5% of used car purchases are financed"

Statistic 9

"Subprime buyers (credit score 501-600) finance an average of 95.29% of their car's cost"

Statistic 10

"Over 1 in 4 auto loans made are given to borrowers with less than 620 credit score"

Statistic 11

"Lenders typically need a down payment that’s at least $1,000 or 10 percent of the car’s selling price"

Statistic 12

"The loan amount for a new vehicle in 2019 was $32,119, while for a used car it was $20,137 on average"

Statistic 13

"For a new car, the average loan term is about 69 months"

Statistic 14

"The average credit score of a subprime borrower for auto loans was 501-600 in the first quarter of 2019"

Statistic 15

"Over 10.6 million used cars were financed in 2019"

Statistic 16

"People with no credit experience 14.39% as the average rate on a used car loan"

In summary, individuals with lower credit scores often face the necessity of making larger down payments on cars, with 20% of the car’s price considered optimal for those without credit history. Buyers with low credit scores typically encounter interest rates ranging between 10% to 14%. The average credit score requirements, loan amounts, and monthly payments vary for new and used cars, with subprime buyers financing a significant percentage of their car costs. Loan terms for new and used cars differ, with a notable portion of auto loans extending beyond six years. Despite challenges, a considerable number of auto loans are still granted to borrowers with credit scores below 620, emphasizing the accessibility of financing options in the automotive market. These statistics highlight the complex landscape of car financing and the nuances involved for individuals with varying credit profiles.

Jannik Lindner

Jannik is the Co-Founder of Gitnux and has been working in the digital space since 2016. He is specialized in content and tech.

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