What is On Approved Credit (O.A.C.)?

On Approved Credit, usually abbreviated as O.A.C., is a term used in automotive advertising and financing to indicate that an advertised price, payment, interest rate, or lease offer is only available to buyers who qualify based on their creditworthiness. In plain terms, the advertised deal is subject to approval by a lender.

What it means for buyers: When you see “O.A.C.” next to a payment or rate, it signals that the final terms you actually receive may differ from the advertised offer depending on your credit score, income, existing debt, and credit history. Buyers with strong credit are most likely to receive the advertised terms, while those with weaker credit may be offered a higher rate or different conditions.

Why dealerships use it: O.A.C. protects dealers and lenders by making clear that promotional offers are conditional on lender approval and not guaranteed to every applicant. Streamlining that approval is where technology helps — a connected lender network lets dealers submit applications and secure approvals in minutes instead of days.

The bottom line: O.A.C. simply means “if you qualify.” Before you commit, ask the dealership what rate and terms you personally qualify for, so you can compare the real offer against the advertised best case.