We’ll help you through every step of getting a loan, including comparing lenders and explaining how your credit score affects finding a loan in the Bluegrass State.

How to get a car loan in Kentucky

If you don’t have the full cash amount needed for a new set of wheels, a traditional car loan is the best way to pay for a car purchase in Kentucky. You can get a loan from a bank, a credit union, or your car dealership, and pay off the full value over a few years.

Here’s what’s ahead when you take out a car loan in Kentucky:

Make a down payment (usually at 10% or more of the car’s value).
Choose a loan term (i.e. the length of your loan) and secure an interest rate with your lender.
Make monthly payments towards the loan principal (i.e. the amount you borrowed) over the loan term.
Pay the monthly interest set by your annual percentage rate (APR).

Your particular loan depends on a few elements, like the type of car you buy, your credit score, and the loan term you choose. Take a peek at the table below to see what kind of APR and monthly payment you can expect with a Kentucky car loan.

Credit Rating

Car Make	Average Annual Interest Rate	Average Monthly Payment
ACURA	8.07	$360
ALFA ROMEO	8.13	$361
ASTON MARTIN	8.13	$361
AUDI	8.24	$361
BENTLEY	8.13	$361
BMW	8.64	$365
BUICK	8.16	$361
CADILLAC	8.4	$363
CHEVROLET	8.16	$361
CHRYSLER	8.42	$363
DODGE	8.26	$362
FERRARI	8.13	$361
FIAT	8.19	$361
FORD	8.16	$361
GENESIS	8.13	$361
GMC	8.1	$360
HONDA	7.96	$359
HYUNDAI	8.16	$361
INFINITI	8.26	$362
JEEP	7.96	$359
Jaguar	8.13	$361
KIA	8.34	$362
LAMBORGHINI	8.13	$361
LEXUS	8.1	$360
LINCOLN	8.24	$361
LOTUS	8.13	$361
Land Rover	8.13	$361
MERCEDES-BENZ	8.13	$361
MINI	8.13	$361
MITSUBISHI	8.26	$362
Maserati	8.13	$361
Mazda	8.13	$361
NISSAN	8.21	$361
POLESTAR	8.13	$361
PORSCHE	8.25	$362
RAM	8.16	$361
ROLLS-ROYCE	8.13	$361
Subaru	8.13	$361
TESLA	8.52	$364
TOYOTA	7.96	$359
VOLKSWAGEN	8.16	$361
VOLVO	7.99	$359

All set to look for a car loan in Kentucky? Here’s what’s next.

Check your credit

You need to know your credit score. Ideally, it will be 660 or better so your loan will have a good interest rate. If your score is above average (usually 700 or above), you could even get an interest rate of 3% or lower! The national average hovers around 5%.

The table below can help you estimate your average interest rate plus monthly payment, based on your credit score.

Credit Rating

Loan Terms	Average Annual Interest Rate	Average Monthly Payment
24	10.51	$693
36	8.39	$470
48	7.89	$363
60	7.85	$300
72	8.12	$261

Compare lenders

It’s not a good idea to accept the first loan offer you get. Car dealerships sometimes offer to finance the loan, but it’s not as convenient as it sounds. The loan you agree to could be better for the dealer than it is for you.

Check with at least three lenders before you decide. The best lender will offer a low interest rate, but think about your approval odds and customer service as well.

Choose your loan term

You have control over your loan term—that’s the length of time you’ll take to pay off your balance. The average term for a car loan in Kentucky is between 60 months and 72 months.

Your monthly payments will be lower with a longer term—but you’ll end up paying more in interest. A longer term is more expensive in the long run. Try to get the shortest loan term that lines up with your finances. Ideally, it will be 60 months or less.

The table below will help you see how your APR and monthly payment can change based on your loan term in Kentucky.

Credit Rating	Average Annual Interest Rate	Average Monthly Payment
Fair	15.29	$410
Good	8.42	$361
Very Good	5.11	$341
Excellent	3.89	$333

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

Get preapproved

Getting preapproved for a loan is a huge advantage when it comes to car shopping.

Preapproval gives you more power in both the dealership and a private sale. Having your loan amount and monthly payment in hand will give you the confidence needed to negotiate for the best deal on your car.

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

Absolutely! You can get a car loan to finance the purchase of a used car in Kentucky. But keep these things in mind:

Used car loans lead to higher interest rates, usually around 8%.
Lenders often have limits on the age of a used car and will not issue loans for older models.
A lot of banks have minimum amounts for car loans. If the loan you need is small, consider a loan from a credit union.

The age of your car can affect your car loan in Kentucky. Find out how with this table.

Car Make

Car Year	Average Annual Interest Rate	Average Monthly Payment
2021	7.46	$305
2020	7.78	$308
2019	7.96	$308
2018	7.81	$307
2017	7.98	$308
2016	8.11	$309
2015	8.26	$310
2014	8.24	$379
2013	8.3	$380
2012	9.05	$509
2011	9.05	$509
2010	9.05	$509

MORE: Sheriff’s inspection form: what is a sheriff’s inspection form for the state of Kentucky?

Kentucky car loan calculator

We’ve been over how car loans work, how to choose a loan term, and how to factor in the type of car you’ve chosen. Ready to see how it all fits together?

Jerry’s car loan calculator can show you how much you could pay for a car loan in Kentucky and what interest rate you can expect with your credit score, loan term, loan amount, and car make.

Remember that these values are averages—the loan agreement with your lender is negotiable, plus any additional fees or penalties. But this tool can set you up for success when you walk into a loan negotiation!

Car Make

Credit Rating

Loan Terms

Loan Amount

Average Annual Interest Rate	Average Monthly Payment
8.18	$361

MORE: Kentucky electric vehicle incentives

How to find affordable car insurance in Kentucky

Financing your car is the first step—you need car insurance in line with Kentucky’s minimum legal requirements before you can leave the lot with your new (or used) car.

The Jerry app makes insurance easy. Jerry is a licensed broker who can search for and analyze quotes from more than 50 top insurance companies in 45 seconds. Check your quotes in the app, and pick the best rate for your budget.

Jerry can take it from there! Jerry deals with all the paperwork and even helps cancel your old policy. Jerry is more than a convenient insurance shopper, though: Jerry users save on average $887 a year on car insurance.

“Jerry was helpful every step of the way. They saved me over $100 a month for insurance in Kentucky.” —Jim F.

FAQs

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

Ideally, borrowers should have a credit score of 660 or above to qualify for a car loan in Kentucky. However, it’s possible to find a lender willing to approve you even with a below-average credit score.

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

It depends. You can take out a car loan for new and used car purchases, but sometimes banks won’t lend below a certain amount. If the used car you’re eyeing is inexpensive enough, your bank may not approve your loan.