According to CarMax, the company can find financing for the majority of people with bad credit. Lenders adjust the interest rate of an auto loan based on the applicant's credit score, and the lower the credit score is, the higher the interest rate.
Atlhough an applicant's credit score is typically the biggest factor a lender considers when determining an auto loan interest rate, down payment size and the type of vehicle being financed are also considered. The larger the down payment, the less risky the loan is for the lender. In general, a used car is financed with a higher interest rate than a new car.