To get a car loan in California, you should have a credit score of 660 or above and aim for a low interest rate and a term no longer than 60 months.

Car insurance and loan super app Jerry is here to demystify the car loan process in California.

We’ll walk you through the steps of getting a loan, help you compare lenders, and explain how your credit score factors in when it comes to finding an auto loan in the Golden State.

How to get a car loan in California

Unless you’re prepared to pay in cash for your new ride, a traditional car loan is the most straightforward way to finance a car purchase in California. With a loan from a bank, a credit union, or the dealership where you bought your car, you can pay off the full value of the car over a number of years.

Here’s what to expect when you take out a car loan in California:

You’ll make a down payment (typically at least 10% of the car’s total value)
You’ll choose a loan term (i.e. how long your loan lasts) and settle on an interest rate with your lender
You’ll pay off the loan principal (i.e. the total amount you need to pay back) in monthly payments over the loan term
You’ll pay monthly interest according to your annual percentage rate (APR)

The exact loan you secure will depend on a number of factors, including what kind of car you’re buying, your credit score, and the loan term you select. Check out the table below to see what your APR and monthly payment could look like with a California car loan.

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

Ready to look for a car loan in California? Here’s what you need to do.

Check your credit

Start by checking your credit score. You want to see a score that’s 660 or better so that you can get a loan with a good interest rate. If your score is above average (e.g. 700 or above), you may qualify for an interest rate as low as 3 or lower. However, the national average is closer to 5%.

Use the table below to estimate your average interest rate and monthly payment based on your 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 just take the first loan offer you come across. If you’re buying your car from a dealership, the dealer may offer to handle the loan, which sounds convenient—but you could be locking yourself into a loan agreement that’s more attractive for the dealer than it is for you.

Compare offers from at least three lenders before you make the call. Look for a lender that can give you a good (i.e. low) interest rate, but take other factors into account as well, like approval odds and customer service.

Choose your loan term

One major aspect of your car loan that’s negotiable is the loan term—i.e., the period of time over which you’ll pay off the balance. The average car loan term in California is between 60 months and 72 months.

The longer the loan term, the lower your monthly payments will be—but you’ll pay more in interest, making a longer loan more expensive in the long term. Aim for the shortest loan term that works with your finances, ideally no more than 60 months.

Here’s how your APR and monthly payment could change based on your loan term in California.

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: Should you get a 72-month car loan?

Get preapproved

Always get preapproved for a car loan if possible. Being preapproved puts you in a position of power when you head into the dealership (or a private transaction). If you know the loan amount you’re approved for and the monthly payment you’ll be paying, you can shop with confidence and negotiate the best deal on your car.

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

Yes: it’s possible to use a car loan to finance a used car purchase in California. However, keep the following things in mind:

You’ll have a higher interest rate for a used car loan (often close to 8%)
Some lenders will not approve loans for cars that are older than a certain limit.
Many banks have a minimum amount for car loans. If you’re looking for a small loan for a used car, a loan from a credit union might be your best option.

Want to see how the age of your car could affect your car loan in California? Take a look at 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: Smog certification: what is a smog certificate for the state of California?

California car loan calculator

We’ve covered how car loans work, how to choose your loan term, and how to account for the type of car you’re buying. Ready to add it all up? Use Jerry’s car loan calculator to figure out how much you could pay for a car loan in California and what interest rate you can look for based on your credit score, loan term, loan amount, and car make.

Keep in mind that these values are averages—when you sit down with your lender to sign the loan agreement, your interest rate and loan term are negotiable, as are any additional fees or penalties. Use this tool to set yourself up for success going into loan negotiations!

Car Make

Credit Rating

Loan Terms

Loan Amount

Average Annual Interest Rate	Average Monthly Payment
8.59	$362

MORE: California electric vehicle incentives

How to find affordable car insurance in California

Auto financing is just the first step—before you can drive off the lot with your new (or used) car, you’ll need to buy car insurance according to California’s minimum legal requirements.

Make the process easy by downloading the Jerry app. As a licensed broker, Jerry can search for and analyze quotes from 50+ top insurance companies in just 45 seconds. Review your quotes in the app and pick the rate that works with your budget.

Then sit back and let Jerry work its magic! Jerry will handle all the paperwork to get you set up with your new low rate and even cancel your old policy for you. With Jerry, you won’t just get the convenience of an expert insurance shopping assistant: Jerry users save an average of $879 a year on car insurance.

“Jerry quoted me a price that saved me almost $4000 a year in California! I definitely recommend Jerry.” —Patricia B.

FAQs

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

In general, it’s best to have a credit score of 660 or above to qualify for a car loan in California. However, you may be able to find a lender willing to approve you for a loan even if your credit is below average.

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

Maybe. You can take out a car loan for a new or used car purchase, but some banks will not lend below a certain minimum amount. If the used car you’re buying has a low enough purchase price, you might not be able to get a loan from your bank.