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Car Loan in Colorado 2023

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Car Loan in Colorado 2023

Make auto loan refinancing easy with PriceProtect™
No long forms · No spam · No rush
Jerry, Inc.
To get a car loan in Colorado, apply with multiple lenders to find the lowest interest rate and sign on for a loan term that’s no more than 60 months long.
Securing a car loan can feel intimidating, but car insurance and loan super app Jerry is here to walk you through the process.
We’ve compiled all the information you need on how to get a loan in Colorado, how to shop for rates, and how your personal finances factor into the equation.

How to get a car loan in Colorado

If you’re in the market for a new car, you’re not alone. Around 85% of vehicles purchased in the U.S. are financed. Lenders like banks, credit unions, and dealerships offer lendees the opportunity to leave the lot with a new car today and pay back the purchase price over time.
What exactly happens when you take out a loan? Here’s a breakdown:
  • You’ll make a down payment of around 10% once you sign the contract.
  • You’ll select a term for your loan (how long you’ll take to pay it off).
  • You’ll start making payments on the loan principal each month (the total cost you owe).
  • You’ll pay interest on the loan each month, which is determined by your annual percentage rate (APR).
The sum of your monthly payment depends on a few elements:
  • The make and model of the car you’re buying
  • Your credit score
  • The loan term you agree on
The table below can paint a picture of what your APR and monthly payment could turn out to be in Colorado:
Car MakeAverage Annual Interest RateAverage Monthly Payment
ACURA8.13$360
ALFA ROMEO8.19$360
ASTON MARTIN8.19$360
AUDI8.3$361
BENTLEY8.19$360
BMW8.74$365
BUICK8.22$360
CADILLAC8.47$362
CHEVROLET8.22$360
CHRYSLER8.5$363
DODGE8.33$361
FERRARI8.19$360
FIAT8.25$361
FORD8.22$360
GENESIS8.19$360
GMC8.16$360
HONDA8.02$359
HYUNDAI8.22$360
INFINITI8.33$361
JEEP8.02$359
Jaguar8.19$360
KIA8.42$362
LAMBORGHINI8.19$360
LEXUS8.16$360
LINCOLN8.3$361
LOTUS8.19$360
Land Rover8.19$360
MERCEDES-BENZ8.19$360
MINI8.19$360
MITSUBISHI8.33$361
Maserati8.19$360
Mazda8.19$360
NISSAN8.28$361
POLESTAR8.19$360
PORSCHE8.33$361
RAM8.22$360
ROLLS-ROYCE8.19$360
Subaru8.19$360
TESLA8.61$364
TOYOTA8.02$359
VOLKSWAGEN8.22$360
VOLVO8.05$359
Ready to start looking for a loan in Colorado? Here’s what you’ll need to do.

Check your credit

You can’t be sure you’re getting the best deal unless you know your credit score. A score of 661 and above should be enough to land you a good interest rate. A credit score over 700 places you in a position that can save you thousands of dollars over the course of the loan in comparison to an average credit score.
Reference the table below to project your monthly payment and interest rate based on your credit score.
Loan TermsAverage Annual Interest RateAverage Monthly Payment
2411.01$696
368.42$469
487.94$362
607.87$300
728.14$261

Compare lenders

With an average credit score, you may be more vulnerable to markups on rates from the dealership. Putting your loan calculations solely in the hands of the dealership can lock you into a loan that’ll hurt your wallet in the long run. That’s why it’s important to go into the purchase prepared with rate comparisons from multiple lenders.
Shop rates from at least three lenders before deciding on a loan provider. Low interest rates are an attractive factor, but accessibility and customer service should also be considered in your decision.

Choose your loan term

You’ll have total agency over how long your loan term, or the number of months you’ll have to pay back the loan, will be. In recent years, the average car loan term has spiked to a record high of 69.3 months according to Edmunds.com.
Long loan terms can pose risks for owing more than your car is worth in the long run since you’ll pay more in interest over the life of the loan. To get the most for your money, it’s best to select the shortest loan term you can afford—ideally no longer than 60 months.
Check out the table below to see how your loan term could affect your APR and monthly payment in Colorado.
Credit RatingAverage Annual Interest RateAverage Monthly Payment
Fair15.76$409
Good8.24$359
Very Good5.07$340
Excellent3.88$333

Get preapproved

It’s always a good idea to get preapproved. Knowledge is power, and walking into a dealership with your ideal numbers in hand will help you navigate their proposals with confidence. When you already have financing from your bank or credit union, you can simply ask the dealership to find you a better rate.

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

Yes. Although it’s possible to get a used car purchase financed with a loan, keep in mind:
  • The loan term shouldn’t be longer than 36 months
  • The car’s age may affect its approval for a loan
  • Your bank may not finance a used car if its actual cash value (ACV) is too low
A credit union may offer the most ideal loan options when it comes to used cars.
To get an idea of how your car’s age could affect your car loan in Colorado, check out the table below:
Car YearAverage Annual Interest RateAverage Monthly Payment
20217.51$304
20207.84$307
20197.98$307
20187.84$306
20177.99$307
20168.12$308
20158.3$309
20148.27$378
20138.33$379
20129.24$510
20119.24$510
20109.24$510

Colorado car loan calculator

Now that you’ve got the down-low on how loans work, how long they should last, and how the car you’re buying factors in, you may just be ready to predict what your loan will look like. With Jerry’s car loan calculator you can determine how much your car loan will be in Colorado with all the pieces of the loan puzzle factored in.
These figures aren’t precise, and they can be swayed by negotiations, additional fees, or penalties that will be discussed in person with your lender. Knowing what to expect in terms of averages can equip you with the confidence to advocate for better rates when you pursue your loan agreement.
Consult this tool and get ready for some successful negotiations!
Average Annual Interest RateAverage Monthly Payment
8.24$360

How to find affordable car insurance in Colorado

There’s a lot of ground to cover before you can drive off into the sunset with your newly financed car. The final step before you can officially seal the deal is securing car insurance.
Backed by a team of licensed brokers, the super app Jerry can take all the hassles and headaches out of shopping for insurance. Kick your feet up while Jerry sources the best rates from dozens of insurance companies to find the best policy for you in just minutes.
Once you have your new policy, Jerry will help you switch over and cancel your old insurance. With Jerry’s speedy assistance, you can get situated in your new car in no time, but Jerry’s with you for the long haul.
You’ll continue receiving newer, better rates before each renewal period, which can save you an average of $887 per year!
“I had a great experience using Jerry for the first time. Once my boyfriend buys his new car, we’ll use Jerry together to make sure he doesn’t end up overpaying on new insurance!” —Stephanie S.

FAQs

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

A credit score of 661 and higher will qualify you for a loan in Colorado. Some lenders may offer you a loan with a lower score, however, which is why it’s good to get quotes from multiple sources.

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

You can typically get a loan for a used car in Colorado. However, if the model is older, your lender options may be limited. It’s best to consult a credit union in that case.

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