5 Options for a First-time Car Buyer Loan
Being approved for an auto loan can be a challenge for first-time car buyers, but some lenders have more flexible credit requirements to help.


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A “first-time car buyer” refers to someone who may have owned a car but has yet to borrow money to purchase a vehicle. They often also lack enough credit history and time on the job to meet traditional lending requirements. All are reasons lenders decline many first-time car buyer loan applications.
But some lenders are more willing than others to extend auto loans to first-time buyers, and there are steps you can take to improve your chances of approval. Expect higher interest rates, but you can most likely refinance down the road with several months of on-time payments on your credit report.
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- 45+ auto loan products reviewed and rated by our team of experts.
- 30+ years of combined experience covering financial topics.
- Objective, comprehensive star rating system assessing 4 categories and 60+ data points across direct lenders and aggregators.
- Governed by NerdWallet's strict guidelines for editorial integrity.
Why trust NerdWallet
- 45+ auto loan products reviewed and rated by our team of experts.
- 30+ years of combined experience covering financial topics.
- Objective, comprehensive star rating system assessing 4 categories and 60+ data points across direct lenders and aggregators.
- Governed by NerdWallet's strict guidelines for editorial integrity.
Options for a First-time Car Buyer Loan
Lender | NerdWallet Rating | Est. APR | Loan amount | Min. credit score | Learn more |
---|---|---|---|---|---|
MyAutoloan - Used car purchase loan See Offers on MyAutoloan's website | 4.0 /5Soft credit check Rate discount | 6.74-35.04% | $8,000-$100,000 | 600 | See Offers on MyAutoloan's website |
MyAutoloan - New car purchase loan See Offers on MyAutoloan's website | 4.0 /5Soft credit check Rate discount | 6.49-34.79% | $8,000-$100,000 | 600 | See Offers on MyAutoloan's website |
Our pick for
Used car loan aggregators
Aggregators connect prospective borrowers with a network of auto lenders, usually resulting in more than one loan offer. We evaluate them using different criteria than direct lenders.
6.74-35.04%
$8,000-$100,000
600
Our pick for
New car loan aggregators
Aggregators connect prospective borrowers with a network of auto lenders, usually resulting in more than one loan offer. We evaluate them using different criteria than direct lenders.
6.49-34.79%
$8,000-$100,000
600
Our pick for
Used car direct lenders
Direct lenders are banks, credit unions and other companies that work directly with a borrower to make and service loans. We evaluate them using different criteria than aggregators.
6.99-27.99%
$1,000-No max.
None
Want to compare more options? Here are our other top picks:
Who is eligible for a first-time car buyer loan?
Where to apply for a first-time car buyer loan
Improve your chances of first-time car buyer loan approval
Credit score | Average APR, new car | Average APR, used car |
---|---|---|
Superprime: 781-850. | 5.18%. | 6.82%. |
Prime: 661-780. | 6.70%. | 9.06%. |
Nonprime: 601-660. | 9.83%. | 13.74%. |
Subprime: 501-600. | 13.22%. | 18.99%. |
Deep subprime: 300-500. | 15.81%. | 21.58%. |
Source: Experian Information Solutions, 1st quarter 2025. Based on VantageScore credit scoring model. |
Make on-time payments and refinance later
Last updated on June 27, 2024
Methodology
NerdWallet's Options for a First-time Car Buyer Loan
- MyAutoloan - Used car purchase loan: Best for Used car loan aggregators
- MyAutoloan - New car purchase loan: Best for New car loan aggregators
- Carvana - Used car purchase loan: Best for Used car direct lenders
- Digital Federal Credit Union - Used car purchase loan: Best for Used car direct lenders
- Digital Federal Credit Union - New car purchase loan: Best for New car direct lenders