Yes, you can get car financing with a 400 credit score, but expect high rates, tight terms, and a larger down payment to raise approval odds.
A 400 score sits in deep subprime territory. Approval is possible through select lenders, credit unions with proof of stability, or dealerships that work with risk-tier programs. The trade-off is price: steeper APRs, smaller loan amounts, and tighter verification. This guide breaks down realistic routes that help you drive away without wrecking your budget.
What A 400 Credit Profile Means For Auto Loans
Deep subprime borrowers face a harsher risk view. Lenders expect missed payments and charge-offs to show up in reports, so they price loans higher and cap the amount financed. The vehicle itself also matters: older cars or high miles can raise risk and push rates up again. Still, many applications with a 400 score get through when the file shows steady income, clean recent payment behavior, and cash down.
Two levers move the needle most: money you put down and how affordable the payment is beside your income. A bigger down payment lowers the lender’s exposure and can turn a soft “maybe” into a “yes.” Choosing a cheaper car does the same thing by trimming the loan-to-value (LTV) ratio.
Approval Paths And Trade-Offs
These are the common routes shoppers use when credit is around the 400 mark. Pick one or stack several to improve odds.
| Option | What Helps | Trade-Off |
|---|---|---|
| Bigger Down Payment (10%–25%) | Lowers LTV; shows commitment; can unlock approval tiers | Ties up cash; may reduce emergency cushion |
| Cheaper Vehicle Target | Smaller loan; easier DTI; better chance with tough files | Fewer features; older model year; higher maintenance risk |
| Credit Union Preapproval | Transparent rate; member-friendly underwriting | Membership steps; income docs needed |
| Qualified Co-Signer | Leverages stronger credit; can cut APR | Shared liability; relationship risk if payments slip |
| Shorter Loan Term | Less total interest; faster equity | Higher monthly payment; tighter budget |
| Proof Of Stability | Verifiable income, residence, and job tenure | Extra paperwork; deeper verification |
| Special-Finance Dealer Network | Access to lenders that accept deep subprime | High APR; add-on pressure; read contracts closely |
How To Get Auto Financing With A 400 Score: Steps That Work Now
Pull Your Reports And Freeze Errors Fast
Grab fresh reports from the major bureaus and check for mistakes, duplicate collections, or paid items not updated. Dispute clear errors. Even small fixes can move pricing at this tier.
Set A Payment Target That Fits Your Income
Pick a monthly cap that leaves room for fuel, insurance, and repairs. Lenders look at debt-to-income (DTI), so a realistic cap improves approval chances and keeps your budget intact.
Build A Strong Down Payment
Cash down is king at 400. Aim for at least 10%–20%. Trade-in equity counts toward this target. The lower the amount financed, the easier the underwriting call.
Choose The Right Car
Pick a reliable model with a fair price and modest miles. Many lenders set age and mileage caps. A clean title with no salvage history keeps the file simple and lowers risk.
Preapproval Before You Shop
Preapproval sets the budget and shortens finance desk time. It also gives you a benchmark to compare any dealer offer. For what shapes your rate, see the CFPB explainer on auto loan pricing factors.
Bring Bulletproof Documentation
Pack recent pay stubs, W-2s or 1099s, bank statements, a utility bill for address, and current insurance info. Gaps in paperwork slow approvals at this score level.
Consider A Co-Signer Only If You Can Protect Them
A strong co-signer can cut APR and expand the vehicle choice. Use this route only if you can meet the payment every month without drama.
What Lenders Check Beyond Credit
Income And Job Tenure
Stable, verifiable income matters. Lenders favor steady payroll deposits and a track record at your current job. Contract or gig income can work with bank statements that show consistency.
Debt-To-Income And Budget Fit
Even with deep subprime credit, an affordable payment near your target DTI can rescue a thin file. If the payment is too high for your income, the file stalls or gets a counteroffer with a cheaper car or more cash down.
Down Payment And LTV
LTV compares the loan amount to the car’s retail value. Lenders feel safer when LTV falls. More cash down or a lower price trims LTV, often shaving APR at the same time.
Vehicle Condition And Title Status
Clean title, no flood or salvage history, and no open recalls on critical parts all help. Some lenders set firm rules on age and mileage; ask the finance desk early to avoid surprise turn-downs.
Rates And Payments You Might See
Deep subprime APRs for used cars often land in the low-20s, with new-car rates in the mid-teens. Loan amounts tend to be smaller and terms shorter than prime files. Expect the finance office to limit add-ons or require GAP on high LTV deals.
Sample Payment Scenarios
These ballpark numbers show how payment size reacts to APR and term length. Taxes and fees vary by location.
| Vehicle Price & Down | APR & Term | Est. Monthly Payment* |
|---|---|---|
| $10,000 price / $2,000 down (financed $8,000) | 22% for 48 months | $252 |
| $10,000 price / $2,000 down (financed $8,000) | 26% for 60 months | $240 |
| $12,000 price / $2,000 down (financed $10,000) | 21.6% for 60 months | $274 |
| $14,000 price / $2,000 down (financed $12,000) | 18% for 72 months | $274 |
| $11,000 price / $2,000 down (financed $9,000) | 15.8% for 60 months | $218 |
*Payments are illustrative and assume simple interest amortization. Your offer depends on lender rules, fees, taxes, and vehicle choice.
How To Keep Total Cost In Check
Favor The Lowest Out-The-Door Price
Negotiate the car first. A lower price trims sales tax, fees tied to price, and interest paid across the term.
Skip Expensive Add-Ons
Items like paint sealants, nitrogen, and high-margin service plans inflate the amount financed. If a protection plan still appeals, price it against third-party quotes and ask for a lower loan amount so the monthly stays in range.
Choose The Shortest Term You Can Afford
Long terms feel easier but keep you upside-down longer. Shorter terms raise the payment a bit but slash total interest and help you reach equity sooner.
Make Extra Principal Payments
Sending $25–$50 extra to principal each month shortens the schedule and trims interest. Confirm there’s no prepayment penalty and that extra funds hit principal.
Avoid Common Traps At Bad-Credit Lots
Know Your Legal Notices
When a lender sets pricing based on your risk tier, they may owe you a “risk-based pricing” notice or an “adverse action” notice if credit is denied. The FTC guidance on adverse action and risk-based pricing explains your rights and what to expect in plain language.
Watch For Payment Packing
This happens when costly add-ons get folded into the payment without a clear line-item choice. Ask for a clean buyer’s order and decline items you don’t want.
Read For GPS Or Kill-Switch Terms
Some lenders require tracking devices or starter interrupt devices. If you see these terms, ask about removal once your account reaches on-time milestones, and confirm there are no junk fees tied to them.
Beware Yo-Yo Deliveries
Spot delivery before lender approval can lead to a “come back and re-sign” call at higher terms. Keep the keys only after you’re certain the finance contract is final.
Step-By-Step Plan To Drive Away On A Budget
- Pull reports and fix errors. Set payment and out-the-door targets before visiting any lot.
- Save cash down or build trade-in value. Aim for 10%–20% down to cut LTV.
- Get a preapproval from a credit union or community bank. Use it as the benchmark.
- Shortlist reliable models priced to fit your payment target at deep subprime rates.
- Bring full documentation: ID, proof of income, residence, and insurance.
- Compare the preapproval against any dealer offer. Match term, APR, and add-ons line by line.
- Sign only when the buyer’s order and retail installment contract match your targets.
- Set up auto-pay and pay a little extra to principal each month to get ahead.
Bottom Line For Shoppers
Financing a car with a 400 score is possible with realistic pricing, strong documentation, and a plan that trims risk for the lender. Lead with cash down, choose an affordable car, lock a clean preapproval, and keep the contract simple. Handle those items well and the keys are within reach, without wrecking your budget.