Does Chevy Finance Bad Credit?

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By

Automotive Content Editor

Meghan Carbary has been writing professionally for nearly 20 years. A published journalist in three states, Meghan honed her skills as a feature writer and sports editor. She has now expanded her skill-set into the automotive industry as a content writer for Auto Credit Express, where she contributes to several automotive and auto finance blogs.


, Automotive Content Editor - October 3, 2022

Chevrolet is one of a handful of automakers that caters to a diverse group of buyers including bad credit borrowers. Chevy currently runs a special specifically for subprime borrowers.

Chevy Offers Bad Credit Financing

Sometimes Chevy offers special discounts for subprime borrowers. Typically, the better your credit score is the better your chance of finding financing. However, some automakers, like Chevrolet, recognize that consumers with poor credit still need cars and cater to borrowers in many credit situations, including bad credit.

Right now subprime customers seeking a new Model year 2022 Chevy Trax, Spark, or Malibu can take advantage of special APR rates that will allow for financing to consumers in lower credit tiers. The special rate is listed at 10.9% APR for up to 72 months. This deal also comes with $2,000 down payment assistance when you finance through GM Financial.

Orders must be made on these vehicles by October 3 to take advantage of this special financing offer. Keep in mind that current industry shortages may affect your ability to find the vehicle you want, so you may have to work with a dealer near you.

Are Chevys Expensive With Bad Credit?

10.9% APR may seem high, but when you consider that the average interest rate for deep subprime borrowers in the second quarter of 2022 was 12.84% according to the Experian State of the Automotive Finance Market report, it may be a good deal for borrowers looking for a new car.

And, depending on your credit score, you may qualify for a lower rate. Even taking the subprime financing deal offered through Chevy, you're looking at a hefty amount of interest charges, however, these deals are on some of the market's cheapest vehicles, which takes out a little sting.

For example, the 2022 Chevy Malibu starts at an MSRP of $24,495, while the 2022 Chevy Trax runs just $22,395 with destination. In both cases, you pay over $8,000 in interest charges by the end of your 72 months loan. This can make these once-affordable vehicles seem a bit expensive.

What Does Chevrolet Consider Bad Credit?

Like many captive lenders, GM Financial breaks borrowers into credit tiers, but the exact scores they use in each tier aren't advertised. GM Financial bases its credit decisions on FICO scores, the most commonly used credit scoring model there is. These scores run from 300 to 850.

According to the GM Financial website, General Motors uses wide guidelines for their credit scores customers with credit scores over 680 are considered prime borrowers, while consumers with a FICO score between 620 and 679 are considered near prime. Any borrower with a score lower than 620 is considered a subprime borrower.

Not all subprime borrowers will be eligible for financing through GM's captive lender, but that doesn't mean financing isn't available for bad credit borrowers. Sometimes, in order to get financing as a borrower with less than perfect credit you need to visit a dealership with special financing options and subprime lenders who are equipped to work with low credit consumers.

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, Automotive Content Editor

Meghan Carbary has been writing professionally for nearly 20 years. A published journalist in three states, Meghan honed her skills as a feature writer and sports editor. She has now expanded her skill-set into the automotive industry as a content writer for Auto Credit Express, where she contributes to several automotive and auto finance blogs.


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