When shopping around for car loans in Arizona, you’ll need a credit score of 660 or above to get a low interest rate and an ideal loan term of 60 months or less.

Getting a car loan is a relatively straightforward process, but you’ll need to do your research before you commit. Car insurance and loan super app Jerry is here to walk you through the process of getting a car loan in Arizona.

Keep reading to learn what to expect, what details to look out for, and how to best prepare when it comes to negotiating your next auto loan in the Grand Canyon State.

How to get a car loan in Arizona

Getting a traditional car loan from a bank, credit union, or your car’s *dealership** is a simple way to finance a car purchase in Arizona. Paying the full price out of pocket on a new car is often unrealistic, but a loan will let you pay the price tag in smaller increments over time.

Taking out a car loan in Arizona is a pretty straightforward process. Here are the common steps you’re likely to take:

Make a down payment (usually 10% of the asking price or more).
Set a loan term (i.e. when the loan should be paid in full by) and an interest rate with your lender.
Make monthly payments during the loan term to pay off the principal (i.e. the original amount covered by the loan)
Pay monthly interest according to your annual percentage rate (APR).

The details of your loan will be influenced by factors like your credit score, the loan term you and your lender land on, and what kind of car you plan on buying. See the table below to find out what kind of APR and monthly payments you could find with a car loan in Arizona.

Credit Rating

Car Make	Average Annual Interest Rate	Average Monthly Payment
ACURA	8.13	$359
ALFA ROMEO	8.19	$359
ASTON MARTIN	8.19	$359
AUDI	8.3	$360
BENTLEY	8.19	$359
BMW	8.72	$363
BUICK	8.21	$359
CADILLAC	8.46	$361
CHEVROLET	8.21	$359
CHRYSLER	8.49	$362
DODGE	8.32	$360
FERRARI	8.19	$359
FIAT	8.24	$360
FORD	8.21	$359
GENESIS	8.19	$359
GMC	8.16	$359
HONDA	8.01	$358
HYUNDAI	8.21	$359
INFINITI	8.32	$360
JEEP	8.01	$358
Jaguar	8.19	$359
KIA	8.41	$361
LAMBORGHINI	8.19	$359
LEXUS	8.16	$359
LINCOLN	8.3	$360
LOTUS	8.19	$359
Land Rover	8.19	$359
MERCEDES-BENZ	8.19	$359
MINI	8.19	$359
MITSUBISHI	8.32	$360
Maserati	8.19	$359
Mazda	8.19	$359
NISSAN	8.27	$360
POLESTAR	8.19	$359
PORSCHE	8.32	$360
RAM	8.21	$359
ROLLS-ROYCE	8.19	$359
Subaru	8.19	$359
TESLA	8.59	$362
TOYOTA	8.01	$358
VOLKSWAGEN	8.21	$359
VOLVO	8.04	$358

Take the following steps once you’re ready to look for a car loan in Arizona.

Check your credit

A credit score of 660 or better is the key to getting a good interest rate on your car loan. Check your score to get an idea of how much interest you could end up having to pay in the long run. The national average is around 5% interest, but a better than average credit score (700 or above) could qualify you for an interest rate of 3% or lower.

Find your credit rating on the table below to get an idea of a potential average interest rate and monthly payment for your car loan.

Credit Rating

Loan Terms	Average Annual Interest Rate	Average Monthly Payment
24	11.17	$696
36	8.44	$468
48	7.92	$361
60	7.79	$298
72	8.18	$260

MORE: How to get a cosigner for a bad credit car loan

Compare lenders

Loan agreements are influenced by the lender you choose to go through, so compare options from at least three lenders before making any commitments. For example, the dealership where you buy your new vehicle may offer to handle the loan. It’s appealing on the spot, but the convenience could benefit the dealer more than it could you.

You won’t know the best loan until you’ve gathered perspective from some different sources. Look for who can give you the lowest interest rate, but also account for factors like approval odds and customer service to make sure you are being taken care of.

Choose your loan term

The amount of time you have to pay off the balance–AKA the loan term–is one of the more negotiable aspects of your prospective car loan. The average car loan term in Arizona falls between 60 months and 72 months.

The trade-off on a loan term is pretty simple–longer terms create lower monthly payments but more interest in the long run. To avoid paying more than you have to on interest, try to get the shortest loan term possible for your finances, preferably 60 months or less.

Check how your loan term could change your APR and monthly payment in Arizona with the table below.

Credit Rating	Average Annual Interest Rate	Average Monthly Payment
Fair	15.95	$407
Good	8.06	$358
Very Good	5.04	$340
Excellent	3.88	$333

MORE: What is the vehicle license tax (VLT) in Arizona?

Get preapproved

Get preapproved for a car loan before committing at the dealership. Preapproval allows you to go into any kind of large-scale transaction with the most knowledge and power available to you. By figuring out what loan amount and monthly payment you’ll be approved for in advance, you’ll be able to negotiate the best deal on your car with ease.

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

Yes: you can use a car loan to purchase a used car in Arizona, but you may run into some roadblocks. Here are some potential risks to consider:

Higher interest rates (closer to 8%)
Lenders may not finance used cars that are older than a set age limit
Minimum loan amounts at the bank could exceed your actual loan needs

If limits at the bank are keeping you from getting the loan you need, you may be able to find a smaller loan from a credit union. If you’re interested in buying used to save money, make sure that the interest rate on your loan doesn’t outweigh the price difference. Use this table to see how the age of a used car in Arizona could affect a car loan.

Car Make

Car Year	Average Annual Interest Rate	Average Monthly Payment
2021	7.47	$303
2020	7.81	$306
2019	7.92	$306
2018	7.79	$305
2017	7.96	$306
2016	8.11	$307
2015	8.29	$308
2014	8.27	$377
2013	8.34	$378
2012	9.31	$509
2011	9.31	$509
2010	9.31	$509

MORE: Arizona electric vehicle incentives

Arizona car loan calculator

Now that you know how to plan for your car loan, use Jerry’s car loan calculator to add it all up! The calculator can give you an idea of interest rates and monthly payments based on your credit score and preferences for the loan term, loan amount, and make of your new car.

Keep in mind, these values may change when you meet with your lender to finalize the loan. The numbers in the calculator are averages that you can use to your advantage when negotiating your interest rate, loan terms, and any fees and penalties.

Car Make

Credit Rating

Loan Terms

Loan Amount

Average Annual Interest Rate	Average Monthly Payment
8.23	$360

How to find affordable car insurance in Arizona

Finding the right car loan to finance your new purchase is only half of the work–you’ll also need to find the right car insurance to meet the Arizonas minimum legal requirements. Luckily for you, finding affordable car insurance has never been easier than with the Jerry app. Jerry is a personal insurance broker that lives in your pocket. Just answer a handful of questions that will take you roughly 45 seconds to complete and you’ll immediately get competitive quotes from more than 50 top insurance providers nationwide.

All you have to do is choose the insurance rate that works for you, and Jerry takes care of the rest—securing your new policy and helping you cancel your old one. No long forms. No calling around. No hard work. Just savings. The average Jerry user saves $887 a year on car insurance.

“I was paying $350 a month for my new car. With Jerry, I set up a new policy in under 30 minutes that will save me over $1000 a year!” —Mariah K.

FAQs

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

A credit score of 660 or above is ideal to qualify for a car loan in Arizona. If your credit is less than average, you may have to look a little harder to find a lender who will approve you for a loan.

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

Some banks maintain limits on minimum amounts when it comes to your car loan, so it depends on how much the used car costs. If the price of the used car is lower than your bank’s minimum, you will have to look elsewhere to finance the purchase.