Keep reading for a complete breakdown on car loans in The Last Frontier state. We’ll cover vital information about comparing lenders to types of offers you can expect.

How to get a car loan in Alaska

On the road to car ownership, loans are an invaluable tool. They allow possible buyers to spread the payment of a vehicle across several years—off-setting the weight of a big purchase. You can get a car loan from banks, credit unions, or most certified car dealerships.

Those seeking a car loan in Alaska should expect the following:

Paying at least 10% of the vehicle value upfront (via a down payment)
Working with a lender to settle on an interest rate and term-length
Using monthly payments to divide a loan principle (total value owed)
Acquiring an interest rate based on your annual percentage rate (APR).

Factors such as vehicle type, chosen term length, and credit are essential for determining how much you’ll pay each month. The following table below shows how loan seekers in Alaska are affected by APR and monthly payments.

Credit Rating

Car Make	Average Annual Interest Rate	Average Monthly Payment
ACURA	8.46	$361
ALFA ROMEO	8.53	$362
ASTON MARTIN	8.53	$362
AUDI	8.66	$363
BENTLEY	8.53	$362
BMW	9.17	$367
BUICK	8.56	$362
CADILLAC	8.86	$365
CHEVROLET	8.56	$362
CHRYSLER	8.89	$365
DODGE	8.69	$363
FERRARI	8.53	$362
FIAT	8.6	$362
FORD	8.56	$362
GENESIS	8.53	$362
GMC	8.49	$362
HONDA	8.32	$360
HYUNDAI	8.56	$362
INFINITI	8.69	$363
JEEP	8.32	$360
Jaguar	8.53	$362
KIA	8.79	$364
LAMBORGHINI	8.53	$362
LEXUS	8.49	$362
LINCOLN	8.66	$363
LOTUS	8.53	$362
Land Rover	8.53	$362
MERCEDES-BENZ	8.53	$362
MINI	8.53	$362
MITSUBISHI	8.69	$363
Maserati	8.53	$362
Mazda	8.53	$362
NISSAN	8.63	$363
POLESTAR	8.53	$362
PORSCHE	8.68	$363
RAM	8.56	$362
ROLLS-ROYCE	8.53	$362
Subaru	8.53	$362
TESLA	9.02	$366
TOYOTA	8.32	$360
VOLKSWAGEN	8.56	$362
VOLVO	8.36	$361

If taking a car loan is right for you, we’ve got the next moves.

Check your credit

First things first, it’s time to check your credit. Better credit scores mean that better interest rates will be available for you. The national average for interest sits at about 5%, but those with great credit (700 or more) can find rates as low 3%.

When applying for a loan, 660 or better credit is a good baseline for finding competitive rates.

Use the following table to see what interest rates and monthly payments you can expect based on credit rating.

Credit Rating

Loan Terms	Average Annual Interest Rate	Average Monthly Payment
24	11.63	$699
36	8.8	$471
48	8.25	$364
60	8.15	$301
72	8.51	$263

Compare lenders

Don’t choose an option without first exploring the competition. When you’re in the market for a car loan, you’ll likely find yourself bombarded with several convenient options—companies promising you a fast and easy loan process at the cost of high-interest rates.

For better or worse, you’ll be stuck with your loan for a substantial period. So, before entering any agreement, ensure you compare at least three lenders. Analyze the interest rates they offer—but don’t overlook factors like approval rating and customer satisfaction.

MORE: What is a good credit score for a car loan?

Choose your loan term

You’ll be able to negotiate the length you’ll be paying off a vehicle—or the loan term. For Alaska, the average loan term is between 60 months and 72 months.

A longer loan term will help reduce your monthly payments—but you’ll end up paying more in interest. When negotiating, strive for a loan term that first meets your budget. 60 months is a highly competitive length and will usually be your best deal.

Use the following table to estimate how your loan term will affect APR and monthly payment.

Credit Rating	Average Annual Interest Rate	Average Monthly Payment
Fair	16.92	$415
Good	8.42	$361
Very Good	5.11	$341
Excellent	3.89	$333

Get preapproved

When shopping for a car loan, always consider getting preapproved. Being preapproved means an outside source has already approved the rate you’re chasing. Using this tool, you can shop for car loans confidently without worrying about unfair rates.

Can you get a car loan in Alaska for a used car?

It’s highly likely you’ll be able to get a loan on a used vehicle in Alaska. When shopping for a used vehicle loan, you should consider the following:

Used cars tend to have higher interest rates (around 8%)
Vehicle age can limit a lender’s willingness to approve a loan
Those looking for a small loan should explore loans from a credit union to circumvent the loan minimums of most major banks

Curious about how vehicle age will affect your ability to secure a loan? Explore this table.

Car Make

Car Year	Average Annual Interest Rate	Average Monthly Payment
2021	7.73	$305
2020	8.14	$309
2019	8.28	$309
2018	8.11	$307
2017	8.31	$309
2016	8.47	$310
2015	8.67	$312
2014	8.64	$380
2013	8.71	$381
2012	9.7	$512
2011	9.7	$512
2010	9.7	$512

MORE: How to get a car loan from a credit union

Alaska car loan calculator

If you feel comfortable with the basics of car loans, term length, and how vehicle type will affect your payments, it’s time to bring it all together. Using Jerry’s car loan calculator, you’ll be able to see how much you should pay for your loan, on average, according to various factors.

This average can give you an incredible advantage in negotiating a loan. By knowing what you’re worth, you’ll be able to confidently assess whether your lender is offering a fair deal.

Car Make

Credit Rating

Loan Terms

Loan Amount

Average Annual Interest Rate	Average Monthly Payment
8.59	$362

MORE: Alaska electric vehicle incentives

How to find affordable car insurance in Alaska

So you’re financed, but before you hit the road, you’ll need to ensure your vehicle lines up with Alaska’s minimum car insurance laws. If you want the best deals, use Jerry.

Jerry is a personal insurance broker that lives in your pocket. But don’t worry about buying tiny office furniture, Jerry is an app! Download Jerry, answer a handful of questions, and you’ll immediately get car insurance quotes for coverage similar to your current plan.

The best part? Jerry customers save an average of $887 a year on car insurance.

“All of the insurance quotes I saw were over $600 a month because of my age. Then I stumbled upon Jerry, and they sliced my price in half! They found me the lowest rate, thank goodness.” —Will V.

FAQs

What credit score is needed to buy a car in Alaska?

It’s good practice to maintain a credit score of at least 660 in Alaska. This score will give you access to competitive loans—but you’ll likely still be able to get approved (with certain lenders) if your score is slightly below this value.

Will a bank give me a loan for a used car?

It’s possible to get a loan for a used car, but it will depend on the car’s age, model, as well as your lender’s requirements. Know that used vehicles loans will usually come with higher interest rates and can be denied if the payments are too small.