Subprime Tier (Tier 4+)
Captive lender credit tiers below prime — typically FICO under 620. APRs run 4-8 percentage points above Tier 1.
Subprime tiers are the lower bands on a captive lender's monthly rate sheet — typically Tier 4, Tier 5, and "deep subprime" for FICO scores below 620. APRs in subprime tiers run 12-25 percent in 2026 vs. 5-7 percent in Tier 1, even on identical loan terms. Subprime tier customers also face larger required down payments, shorter maximum loan terms, mandatory GPS trackers on some BHPH and deep-subprime loans, and restrictions on stackable rebates. The biggest single move for a subprime buyer: get pre-approved at a credit union before stepping into a dealer. Credit union subprime rates are typically 4-8 points lower than dealer-arranged subprime on the same FICO band.