Car Loan for Jeep 2022
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Updated on Feb 16, 2022
To finance your rugged new Jeep, you can get a loan through a dealership, bank, or credit union. While a dealership might be a convenient place to find a loan for your Jeep, banks and credit unions sometimes have better terms and friendlier customer service.
Jeeps are tough, all-terrain vehicles, and it’s no mystery why: they were originally designed for military use in the 1940s. If you’re hoping to jump into the market for a Jeep—whether it’s a powerful pickup truck or an SUV—you’ll want to find the best financing terms available.
Jerry, our car insurance comparison super app, is here to simplify the process for you. We’ll take you through each of the steps to getting a loan for your Jeep so that you can glide down the road (or churn through the mud!) worry-free.
How to get a Jeep car loan
From the iconic Wrangler Sport to the heavy-duty Gladiator Mojave, financing your Jeep shouldn’t be a problem. You’ll need to take three steps: check your credit score, compare three or more lenders, and get preapproved for a loan.
Check your credit
When it comes to your monthly payment and interest rate, your credit score is a big deal—it can be the difference between an outstanding loan with low monthly payments and a sub-par loan with a steep interest rate. Usually, a credit score of at least 660 is good enough to get you a solid rate on your car loan.
If your credit score isn’t quite 660, don’t sweat it. You can work with a dealership to secure a loan, as long as you have proof of income or a dependable co-applicant.
Here’s how your credit score will impact your APR and monthly payment for different Jeep models:
|Car Make||Average Annual Interest Rate||Average Monthly Payment|
MORE: How does your credit score affect car insurance?
Now that you’ve got a feel for what kind of loan you’ll qualify for, your next move is to choose a lender. Your three main options for a loan are a bank, a credit union, or a dealership. If you’re buying through a dealership, double-check that the car you’re purchasing is available with strong financing options.
Generally, the more you research, the better—so we recommend looking at three or more lenders before you select one. While you’re searching, aim for:
- A short term loan: Less than 60 months (5 years), if possible
- Low APR: Less than 4.93%
- A manageable monthly payment: For a used Jeep, no more than 10% of your monthly income (15% for a new Jeep)
Keep in mind that numbers aren’t everything! Of course, your monthly payment and interest rate are key—but excellent customer service is worth a lot when you’re paying off your loan. If you need to make adjustments to the loan later on, a responsive customer service team can make all the difference.
If you’re feeling like you don’t have any bargaining power, preapproval is a good way to gain leverage. You can apply through a lender or a dealership for preapproval, which can help you secure better terms in your final loan agreement.
Here’s a list of a few things you’ll need when applying for preapproval:
- Your social security number
- A photo ID (your driver’s license works great)
- Proof of employment
- Proof of income (paystubs, bank statements, tax returns, etc.)
Key Takeaway When you’re applying for a Jeep loan, the first thing you’ll want to do is check your credit. Next, compare lenders and get preapproved for a loan so that you get the best terms.
Average loan term for a Jeep car loan
In the United States, the most popular car loan term is 72 months (six years). However, this doesn’t necessarily mean it’s the best loan term.
When you’re getting a car loan, you should aim to pay your loan off within 60 months (five years). The quicker you pay your car off, the less interest will accumulate, which will save you lots of cash in the long run. Sure, your monthly payments will be a bit higher—but you’ll be grateful down the road when you save hundreds (or maybe thousands!) of dollars.
If you finance through a dealership, you’ll most likely be looking at a repayment time of 24 to 84 months. Fortunately, most dealerships don’t enforce prepayment penalties, which means that you can pay off your car loan early without facing additional fees.
Check out this table for a comparison of your APR and monthly payment based on your loan term:
|Loan Terms||Average Annual Interest Rate||Average Monthly Payment|
Finding a Jeep car loan in your state
Every state’s a little different—and lenders should understand that. When you compare multiple lenders, you should be able to find one that will customize your loan around the financial situation of your region.
Here’s a look at car loans in different states:
|Credit Rating||Average Annual Interest Rate||Average Monthly Payment|
Jeep car loans: new vs. used
The age of the vehicle you’re purchasing will affect the terms of your loan.
If you’re buying a used Jeep, your best bet might be to finance it with a bank or credit union. Often, these lenders offer better terms for older vehicles, so you can lock down a good interest rate even if you’re buying a battle-hardened Jeep.
If you’re buying a new Jeep, a dealership could be the right move for financing. Banks and credit unions will still give you competitive terms, but dealerships frequently have special financing offers for new vehicles. Currently, based on Jeep’s website, some of these special offers include 0% APR for 36 months or 2.9% APR for 60 months.
Here’s how your Jeep’s age will impact your monthly payment and APR:
|Car Year||Average Annual Interest Rate||Average Monthly Payment|
How to calculate the costs for a Jeep car loan
Whether you’re hoping to hop into a Grand Cherokee or an old-school Patriot, the cost of your car loan will depend mainly on these factors:
- Your credit rating
- The loan term you choose
- The loan amount you need
- Your location
Check out Jerry’s personalized car loan calculator to see what your Jeep loan might look like!
|Average Annual Interest Rate||Average Monthly Payment|
Save money on Jeep insurance with Jerry
If you’ve spent hours looking through financing options, you’re probably tired of crunching numbers and ready to hit the road in your new ride. Jerry, the car insurance comparison super app, will do the hard work of finding the best available coverage for your Jeep.
Just download the app, sign up in 45 seconds, and let Jerry work its magic—getting you the cheapest car insurance on the market in minutes. Plus, as a licensed insurance broker, Jerry will even help you to cancel your old policy and get started with your new one!
The average Jerry user saves $887 per year on car insurance—so you can enjoy your windows-down road trips worry-free.
“I was tired of looking around multiple websites, so I decided to give Jerry a try. Let me tell you—the process is so easy and simple, and they really find you the best prices for your coverage level. Getting insurance for my new car was quick and easy!” —Joanna D.
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