A good car loan in the state of Arkansas has a low interest rate, a loan term of 60 months or less, and will typically require a credit score of 660 or better.

Car insurance and loan super app Jerry is here to help you do the research you need to find your next car loan in Arkansas.

In this article, Jerry covers the loan process, the variables you’ll want to look out for, and the factors that will affect your ability to negotiate a good loan in the Land of Opportunity.

How to get a car loan in Arkansas

Customers looking to buy a new car in Arkansas can pursue a traditional car loan to avoid paying the total price out of pocket. Getting a loan from your bank, credit union, or the dealership where you’re looking to buy allows you to pay off your car in smaller increments over a set amount of time.

The process of getting a car loan in Arkansas looks something like this:

Put forward a down payment (usually 10% of the full price value)
Negotiate a loan term (i.e., the amount of time to pay off the loan) and an interest rate that works for you and your lender
Make payments every month (determined by the loan term) to pay off the principal (i.e., the amount covered by the loan)
Cover monthly interest increases as determined by your annual percentage rate (APR).

The specifics of your car loan will depend on factors like your credit score, the agreed-upon loan term, and the make and model of your new car. The table below will give you an idea of what kind of APR and monthly payments to expect from a car loan in Arkansas.

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

Once you feel good about the process and expectations in Arkansas, you can start pursuing your loan with these next steps.

Check your credit

To get a good interest rate on your car loan, you’ll need a credit score of 660 or better. The average interest rate is 5%, but check your score to see what kind of loan options might be available to you. If your credit score breaks 700, you may qualify for an interest rate as low as 3% or lower

Use the table below to find average interest rates and monthly payments for your car loan based on your credit score.

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

MORE: How to reduce car payments without refinancing your car loan

Compare lenders

When you’re shopping for a car, you may be tempted to take the first loan option that’s offered to you, but doing so could hurt you in the long run. Don’t let convenience fool you—compare options from at least three lenders before signing any agreements.

A car loan is typically a 5- to 6-year commitment, so you need to do your research and plan a few years ahead. When shopping around, pay attention to a lender’s standard interest rates, approval odds, and customer service options, so you can be sure to find the best long-term option.

Choose your loan term

You’ll be able to negotiate your loan term (i.e., the length of time your monthly payments will be spread over) with your lender. The typical car loan term in Arkansas is between 60 to 72 months, but your goal should be 60 or less.

A longer loan term may seem appealing for lower monthly base payments, but you’ll have to pay more interest. That makes this option more expensive in the long run. If you can figure out the shortest loan term that will accommodate your monthly finances, you’ll be able to avoid paying off any excessive interest.

See how APR and monthly payments compare across different loan terms in Arkansas using the table below.

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

MORE: How to calculate total interest paid on a car loan

Get preapproved

Always check for preapproval before entering any commitments. Getting preapproval on a car loan can give you an advantage when you’re navigating the transaction. Be prepared with an approved loan amount and monthly payment idea so you can negotiate the best deal for your new car.

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

Yes: a car loan can be used to finance a used car purchase in Arkansas, but it comes with some slight risk. Here are some things to consider when pursuing a used car loan:

Loans on used cars typically run a higher interest rate (around 8%)
Lenders may choose not to approve you if the used car is at or above a certain age
Banks often impose a minimum loan amount which could limit your options. In this case, a smaller loan from a credit union may suffice.

You’ll want to make sure that the interest rate and available loan options don’t negate the perceived worth of the used car you’re looking at. Check the effects of car age on your Arkansas car loan with the table below.

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: Arkansas electric vehicle incentives

Arkansas car loan calculator

Got everything you need to make informed decisions on your car loan? Finish your research by running the numbers through Jerry’s car loan calculator! Use your credit score to check average interest rates and monthly payments for different loan terms, types of vehicles, and total loan amounts,

The average values provided by this calculator are intended to give you an idea of what to expect, but they may change when you sit down with your lender. That being said, you can use these values to make informed negotiations with your lender before finalizing your loan details.

Car Make

Credit Rating

Loan Terms

Loan Amount

Average Annual Interest Rate	Average Monthly Payment
8.59	$362

How to find affordable car insurance in Arkansas

Once you’ve nailed down your auto financing, make sure you’ve got the right car insurance to meet Arkansas’s minimum legal requirements. We know you like to do your own research, but why do all the hard work when car insurance brokerage and loan expert app Jerry can do it for you?

After providing you with a comprehensive cross-analysis of the best policies across providers, Jerry will handle the phone calls, paperwork, and renewals for your top insurance pick so that you don’t have to. They even help cancel any old policies! It’s that kind of hard work that helps the average Jerry user save $887 a year on car insurance.

“Using Jerry is a super straightforward process, and at each step, you can see exactly what coverage you’re paying for. Thanks to Jerry, I’m paying $900 less each year while keeping full coverage for my new car!” —Martin H.

FAQs

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

Financing a car in Arkansas is easiest with a credit score of 660 or above. If your credit score falls short, you may not be entirely out of luck, but you will have to work harder to find a lender who will approve you.

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

A bank may be able to give you a loan for a used car, but it depends on whether the price of the used car meets the bank’s minimum loan amount. If the used car’s price tag does not meet this minimum, you’ll have to pursue a different financing option.