If you’re looking to find a car loan in Connecticut, you’ll want to make sure that you have a credit score of 661 or higher. The best car loans are generally short-term and have a low interest rate.

Securing a loan to purchase a car might seem tricky at first. You have to understand how your credit score and your new car’s make might affect your loan, as well as what type of loan is best for you. As long as you know what to look out for, you’ll find the process is relatively smooth.

To figure out everything you need to know about securing a car loan in Connecticut, stick with this guide compiled by the car insurance broker Jerry.

How to get a car loan in Connecticut

Most people don’t have the kind of cash you need to buy a new car out of pocket, so getting a loan is the common way to purchase a car in Connecticut. By taking out a loan at a bank or other financial institution, you’ll be able to pay off your car over multiple years.

Here is what some of the steps will look like when you get a standard loan in Connecticut:

You have to make a down payment with money you have on hand. Standard down payments are between 10–20% of the car’s total value.
You select how many months you need to pay off your loan, also known as the loan term.
You and the lender agree on an interest rate, which is a monthly increase to the amount you owe.

You’ll then have the chance to pay off the loan in monthly intervals. Your interest rate will be based on your annual percentage rate (APR).

Several factors will help to determine the loan a lender might extend to you. Your credit score and desired loan term will play a major role, as will the make and model of the car you are looking to buy.

Check out the table below to get an idea of what your APR and monthly payments might come out to in Connecticut.

Credit Rating

Car Make	Average Annual Interest Rate	Average Monthly Payment
ACURA	7.79	$359
ALFA ROMEO	7.84	$359
ASTON MARTIN	7.84	$359
AUDI	7.93	$360
BENTLEY	7.84	$359
BMW	8.22	$363
BUICK	7.86	$359
CADILLAC	8.05	$361
CHEVROLET	7.86	$359
CHRYSLER	8.07	$361
DODGE	7.95	$360
FERRARI	7.84	$359
FIAT	7.88	$360
FORD	7.86	$359
GENESIS	7.84	$359
GMC	7.82	$359
HONDA	7.7	$358
HYUNDAI	7.86	$359
INFINITI	7.95	$360
JEEP	7.7	$358
Jaguar	7.84	$359
KIA	8	$361
LAMBORGHINI	7.84	$359
LEXUS	7.82	$359
LINCOLN	7.93	$360
LOTUS	7.84	$359
Land Rover	7.84	$359
MERCEDES-BENZ	7.84	$359
MINI	7.84	$359
MITSUBISHI	7.93	$360
Maserati	7.84	$359
Mazda	7.84	$359
NISSAN	7.9	$360
POLESTAR	7.84	$359
PORSCHE	7.94	$360
RAM	7.86	$359
ROLLS-ROYCE	7.84	$359
Subaru	7.84	$359
TESLA	8.15	$362
TOYOTA	7.7	$358
VOLKSWAGEN	7.86	$359
VOLVO	7.72	$358

If you’re itching to get started, here are your next steps to secure a car loan in Connecticut.

Check your credit

You’ll need to check your credit score and make sure it’s good enough to get a decent loan. The general rule is that a score of 660 or over is good enough to get a favorable loan with a low interest rate.

The national average interest rate is 5%, so if you have average credit, that’s about what you can expect. If your credit score is in the 700s or higher, you can expect your loan to have an interest rate as low as 3%.

The table below can help you estimate how much you’ll have to pay each month based on your credit score:

Credit Rating

Loan Terms	Average Annual Interest Rate	Average Monthly Payment
24	9.79	$688
36	8.09	$469
48	7.64	$362
60	7.59	$299
72	7.83	$260

MORE: Does refinancing a car hurt your credit score?

Compare lenders

One of the nice things about looking for a car loan is that, as long as you have decent credit, you can shop around. Sure, it may be convenient to take the first loan that’s offered to you or to let the dealership handle it, but you may not end up with a favorable loan if you do.

The main thing you should worry about when choosing a lender is finding a low interest rate, but you should also take factors like customer service or your odds of being approved into consideration.

Compare offers from multiple lenders before locking yourself in with one. You’ll want to get quotes from a minimum of three lenders before making any decisions, but checking in with more won’t hurt.

Choose your loan term

The one part of your car loan that you’ll have a lot of say in is your loan’s term, or the amount of time you’ll have to pay it. On average, car loans are somewhere between 60 months and 72 months, but there is a lot of room for variance.

The advantage of a long loan term is that you’ll have a lot more time to pay it off. However, a longer loan means more months that you are charged interest on your payments, so you end up spending more total.

You’ll want to secure the shortest loan that you can manage based on your finances. In general, a loan of 60 months or less is advisable.

The table below will give you a look at how your APR and monthly payment might change based on the length of your loan in Connecticut.

Credit Rating	Average Annual Interest Rate	Average Monthly Payment
Fair	14.1	$404
Good	8.41	$361
Very Good	5.11	$341
Excellent	3.89	$333

MORE: Should you get a 72-month car loan?

Get preapproved

Getting preapproved is one of the best things you can do before buying a car. Once you’re preapproved, you’ll know the exact term and monthly payments included in your loan. That means you won’t have to deal with any unknowns when shopping at a dealership, and you’ll be able to land the car that’s right for you.

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

Yes, you can get a car loan for a used car in Connecticut. There are a few factors that you’ll want to take note of:

Many lenders have an age limit for car’s they are willing to provide loans for.
Loans for used cars tend to have a much higher interest rate (around 8%).
Since most banks have a minimum for car loans, it may be difficult to secure a loan for a cheap used car. You can consider taking out a loan with a credit union if you can’t work with a bank.

If you’re wondering how the age of your car might affect your monthly payments in Connecticut, take a look at the table below.

Car Make

Car Year	Average Annual Interest Rate	Average Monthly Payment
2021	7.25	$304
2020	7.43	$306
2019	7.72	$307
2018	7.59	$306
2017	7.73	$307
2016	7.83	$308
2015	7.96	$309
2014	7.95	$378
2013	8	$378
2012	8.61	$507
2011	8.61	$507
2010	8.61	$507

MORE: How to find out if a used car has a lien

Connecticut car loan calculator

Since there are so many factors that go into a car loan, it can sometimes be difficult to find a reliable estimate. Luckily, Jerry’s car loan calculator can help you figure out what your interest rate and monthly payments in Connecticut might look like based on your credit score, loan term, and desired car.

Since your actual car loan will be decided at the negotiating table, these numbers are meant to reflect the averages in Connecticut. You can use them as a tool to help you secure a favorable loan when you sit down with a potential lender.

Car Make

Credit Rating

Loan Terms

Loan Amount

Average Annual Interest Rate	Average Monthly Payment
7.88	$360

How to find affordable car insurance in Connecticut

Getting a car loan isn’t the only thing you need to worry about when you’re buying a new ride. Connecticut law also has a threshold for the minimum insurance you’ll need to carry.

Of course, after dealing with the stress of securing a loan and finding the right car, the last thing you’ll want to do is shop around for insurance. Fortunately, the Jerry car insurance comparison app makes it easy. Signing up takes just seconds, and Jerry will scan cheap quotes from over 50 name-brand insurers in minutes to be sure you get the best deal.

You won’t have to worry about paperwork or phone calls either. Jerry takes care of it all for you. On top of all that, the average Jerry user saves $887 on their car insurance every year.

“Jerry was a great experience. It was my first time buying insurance, and they took their time explaining a lot of insurance terms to me. Shopping around for quotes was super easy!” —Dakota F.

FAQs

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

The general rule is that you’ll want a credit score of over 660 if you want to find a favorable loan in Connecticut. You may be able to find a lender willing to work with you if you have a lower score, but you can expect a higher insurance rate as a consequence.

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

It depends on the price. Banks don’t generally have a rule against car loans for used cars, but they do have a minimum value for loans they give out. If you’re trying to secure a loan on a cheap car, you may be better off working with a credit union.