If you’re hoping to finance a sweet new BMW, you can use BMW Financial Services to get a loan through a dealership or take a more traditional route and secure a loan from a bank or credit union. You might have an easier time financing through a dealership, but a bank or credit union could give you better customer service and friendlier terms.

BMW began as an aircraft engine manufacturer, which won’t surprise anyone who has felt the roaring power of a BMW M6 or the smooth acceleration of a 740i. No doubt, when you’re preparing to finance a BMW, you’ll want to find the best deal on the market.

Car insurance comparison super app Jerry is here to walk you through the whole process—so you can secure the perfect loan and hop into your new ride stress-free.

How to get a BMW car loan

Whether you’re looking for a more affordable 230i or a luxurious i8, getting a BMW loan shouldn’t be a problem. Just follow three main steps: check your credit score, compare at least three lenders, and finally, try to get preapproved for a loan.

Check your credit

Your credit score is one of the most important ingredients in determining the terms of your loan. Generally speaking, a score of over 660 will be good enough to get a solid car loan.

If your credit score is below 660, don’t panic! You might be able to work with a dealership to get a loan, as long as you have proof of income or a co-applicant.

Check out this table to see the average APR and monthly payment for different BMW models based on your credit score.

Credit Rating

Car Make	Average Annual Interest Rate	Average Monthly Payment
BMW	9	$366

MORE: How to buy a car with bad credit

Compare lenders

Once you’ve got a feel for the type of loan you’ll qualify for, the next step is to select the best lender. You can get a loan through a bank, credit union, or dealership. If you’re buying from a dealership, double-check to make sure that they participate in BMW Financial Services.

Though there’s no magic number, we recommend comparing at least three lenders before you decide who to go with. Keep an eye out for a:

Short term loan: Ideally, less than five years
Low APR: Less than 4.93%
Affordable monthly payment: No more than 10% of your monthly income for a used BMW or 15% for a new one

Remember, it’s not all about the numbers! Sure, the terms of the loan are important—but you’ll want to find a lender with great customer service as well. Nothing is more frustrating than trying to better understand or modify your loan and being met with a busy tone or automated message.

Get preapproved

If you want better leverage when you’re negotiating your car loan, try to get preapproved. You can work with BMW Financial Services to get preapproved, then use your approval to improve the terms of your finalized loan agreement.

Here are some things to have handy when you’re applying for preapproval through your lender:

Your social security number
Proof of employment
Photo ID (your driver’s license will work just fine)
Proof of income (pay stubs, bank statements, etc.)

Key Takeaway Check your credit rating before you apply for a loan for your BMW. Then, compare lenders and get preapproved for the loan—this will help you to negotiate better terms for the finalized loan agreement.

Average loan term for a BMW car loan

A crucial step in the financing process is choosing the right loan term. Though the most popular car loan term in the United States is 72 months (six years), it isn’t necessarily the best loan term.

It’s best if you try to pay off your loan in less than 60 months (five years). A shorter loan term means less interest, which will keep your total costs as low as possible. Sure, your monthly payments will be a little higher—but you’ll thank yourself down the road when you save hundreds (or even thousands!) of dollars in interest.

Most loan terms from BMW Financial Services land between 24 and 60 months. If you’ve got great credit, you might even qualify for an APR as low as 2.49% when you finance through the dealership. Plus, when you use BMW Financial Services, you won’t have to worry about a prepayment penalty, which means that you can pay your loan off early without getting hit by extra fees.

Here’s a comparison of the monthly payment and interest rate you can expect from different loan terms:

Credit Rating

Loan Terms	Average Annual Interest Rate	Average Monthly Payment
24	11.99	$704
36	9.41	$477
48	8.66	$368
60	8.55	$305
72	8.83	$266

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

Finding a BMW car loan in your state

When it comes to finding the best car loan, your financing options will vary based on your state. By comparing multiple lenders, you should find one that understands your region’s financial situation and will be able to tailor a low-interest loan for you.

For a breakdown of car loans in different states, check out this table:

Credit Rating	Average Annual Interest Rate	Average Monthly Payment
Fair	17.79	$426
Good	9.06	$365
Very Good	5.22	$341
Excellent	3.92	$333

MORE: Minimum car insurance required in your state: What you need to know

BMW car loans: new vs. used

The terms of your loan will depend on whether you’re financing a new or used BMW.

If you’re buying a used BMW, you’ll probably want to get a loan through a bank or a credit union. Though BMW Financial Services offers competitive loan options for cars that are from 2018 or later, a bank or credit union will get you the best rate on an older BMW.

If you’re buying a new BMW, you can pick the path that suits you best. A dealership should offer loans with low interest, just like a bank or credit union.

Here’s a look at how your BMW’s age will affect your monthly payment and interest rate:

State

Car Year	Average Annual Interest Rate	Average Monthly Payment
2021	7.92	$307
2020	7.97	$308
2019	8.47	$311
2018	8.68	$313
2017	8.89	$314
2016	9.06	$316
2015	9.28	$318
2014	9.24	$386
2013	9.34	$387
2012	10.23	$518
2011	10.23	$518
2010	10.23	$518

MORE: What to look for when buying a used car

How to calculate the costs for a BMW car loan

Whether you’re financing an older crossover or a brand new sports sedan, your APR and monthly payment will depend mainly on these factors:

Your credit rating
The loan term
The loan amount
Your location

Jerry’s customized car low calculator can show you what your BMW loan might look like.

State

Credit Rating

Loan Terms

Loan Amount

Average Annual Interest Rate	Average Monthly Payment
9	$366

Save money on BMW insurance with Jerry

No matter what route you choose for financing your sleek new BMW, you can find the best coverage with Jerry. Jerry is your best friend when it comes to saving money on car insurance—it’s a comparison super app, insurance-shopping genius, and licensed broker all bundled into one.

Sign up in just 45 seconds then compare the top rates from over 50 popular insurers. No need to worry about paperwork—Jerry’s got that covered, too! Select your favorite policy and Jerry will help you get started with your new coverage.

The average Jerry user saves $887 per year on car insurance.