For financing on a Hummer, you can get a loan through a dealership or opt for an auto loan through a bank or credit union. Because Hummer is now defunct, you will have to opt for loans tailored for the purchase of used cars.
Hummer came on the scene in the early 90s with its iconic first model of a civilian version of the military’s Humvee vehicle. The company gained pop-culture status in the automotive world, which helped keep the company going into the new millennium. While Hummer eventually went under in 2010, it was resurrected under the GMC badge in 2020, with new Hummer models coming out in the near future.
So for the moment, Hummers are only available used, which means you’ll need a used car loan. But which is the best-used car loan for the would-be Hummer owner? Just ask
Jerry, the
car insurance broker and loan expert, to help guide your way.
How to get a Hummer car loan
Whether you’re looking for an H1, an
H2, or an
H3, unless you’re paying cash out of pocket, you’ll need to find the right auto loan. Here’s a step-by-step guide on how to prepare, what to expect, and how to seal the deal.
Check your credit
First step: check your credit score. It’s the most important factor that lenders consider when they decide on your loan conditions. That includes your interest rate and the repayment terms, so better scores mean less money you’ll pay overall. If your credit score is over 660, you’re in a good position going in.
A credit score below 660, however, may complicate the situation. It doesn’t necessarily make it impossible to get a car loan, but you’re less likely to be approved. You may have to provide proof of income or have a cosigner. Keep in mind that if you are approved, your loan conditions may be less favorable, so be sure you know whether or not your monthly loan payments in this case would be doable.
Use the table below to determine your average APR and monthly payment for different Hummer vehicles based on your credit score:
Car Make | Average Annual Interest Rate | Average Monthly Payment |
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Compare lenders
It’s one thing to know the kind of loan you may qualify for, but another to find a lender that fits the bill. You can apply for an auto loan through your bank, a credit union, or the used car dealership directly. But make sure you’re comparing offers before you sign on the dotted line.
You should ideally compare at least three lender offers, but don’t be afraid to shop around. Look for the following loan conditions:
- Short loan term of 60 months at most.
- Low APR at 4.93% or lower.
- Manageable monthly payments, no greater than 15% of your monthly income.
Your lender’s reputation is also important to consider.
Get preapproved
Getting preapproved for your car loan can put you at an advantage because you’ll go into any negotiation with a lender with the knowledge of how much you can reasonably afford to borrow. It helps you prevent getting stuck with an unfair deal or being pushed beyond your means.
To get preapproved, you’ll first need to fill out a loan application and provide your lender with the following information:
- Social Security number
- Employment documents
- Driver’s license or other photo ID
- Income documents (paystubs, etc.)
Key Takeaway To get a car loan for a Hummer, make sure you know your credit rating first. Then, shop around for lender offers and compare to find the best conditions and service.
Average loan term for a Hummer car loan
Choosing a loan term takes the most overall consideration. It can determine how much you pay in interest and how much you pay per month. Short loan terms have higher monthly payments but accrue less interest. On the other hand, longer loan terms accrue more interest but have lower monthly payments.
A favorable loan term is one where you can afford the monthly payment and get the loan repaid as quickly as possible to save on interest and pay less overall.
At Jerry, we recommend a loan term of around 60 months. Of course, if you can afford the higher monthly payments, there’s nothing wrong with shorter terms, so you can pay the loan off sooner and for less.
If you opt for a longer loan term with lower monthly payments, with the hope that you can pay it off early when you are able to, check your loan contract for
prepayment penalties before you sign. These penalties, which can crop up under different names, charge you an additional fee for paying the loan off early.
Prepayment penalties are not standard in most auto loans, but the practice isn’t unheard of and is starting to become more common. So be sure to read your contract carefully and ask for clarification on any terms or jargon you don’t understand.
Meanwhile, you can use the following table for an idea of how much your APR, interest, and monthly payments might look, depending on your credit rating:
Loan Terms | Average Annual Interest Rate | Average Monthly Payment |
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Finding a Hummer car loan in your state
Used car loans are available via most lenders in every state, so finding them is relatively easy. As mentioned, the trick is finding used car loans that have the most favorable conditions.
Like every other type of loan, used auto loans accrue interest, so the amount you end up paying back is always more than the amount you borrowed. There are two reasons why: interest rates, which are determined by the state you buy in, and APR, which is determined by your credit score.
So check out the table below to get a feel for how much your average monthly payment might be depending on your state and credit score.
Credit Rating | Average Annual Interest Rate | Average Monthly Payment |
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Also important to remember is that used car loans typically carry higher APR. However, the loan amount you’ll borrow will likely be significantly less than what you would borrow for a brand new car, so that higher rate may be easier to manage.
If you want to get an idea of how your potential Hummer’s age can affect your loan, payment, and APR, take a look at the following:
Car Year | Average Annual Interest Rate | Average Monthly Payment |
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How to calculate the costs for a Hummer car loan
Get a better picture of what your financing options can look like with Jerry’s car loan calculator. Since your APR and monthly payments are dependent on a number of factors, play around with loan terms and amounts to find the right loan conditions.
Average Annual Interest Rate | Average Monthly Payment |
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Save money on Hummer insurance with Jerry
If you’re hoping to get ahead on your auto loan payments, consider finding more affordable
car insurance with
Jerry. You don’t have to sacrifice coverage to find great rates though—with Jerry, you can have the best of both!
Jerry is the fully-licensed brokerage app that handles all the tedium that comes with comparison shopping for car insurance. Just give Jerry a few basic details, and let it handle the rest. In minutes, you’ll be shopping through dozens of tailored quotes to find great coverage at a great price!
And with Hummer’s gas mileage, you may need that $887 per year that Jerry users save on average for their insurance to keep the tank topped up!