If you need a car loan in Louisiana, your credit score should be around 660 or above in order to obtain a low interest rate and a term no longer than five years.

Car insurance and loan super app Jerry is here to lend you a hand throughout the car loan process in Louisiana.

In this article, we’ll guide you through the steps of securing a loan, assist you in comparing lenders, and explain the role your credit score has on your auto loan in the Pelican State.

How to get a car loan in Louisiana

Unless you’re able to pay cash upfront for your new car, a traditional auto loan is the best way to finance a car purchase in Louisiana. With a loan from a bank, a credit union, or the dealership where you bought your car, you can pay off the full value of the car over a few years.

Here’s what to expect when you take out a car loan in Louisiana:

Typically, you’ll make a down payment of at least 10% of the car’s total value.
Choose a loan term (length of your loan) and negotiate an interest rate with your lender.
Your payments will go toward the loan principal (the total amount you need to pay back) in monthly payments over the loan term.
Part of your monthly payments will also go toward interest according to your annual percentage rate, or APR.

Your exact loan will be determined by three main factors:

The type of car you’re purchasing
Your credit score
The loan term you select

Check out the table below to see what your APR and monthly payment could look like with a Louisiana car loan.

Credit Rating

Car Make	Average Annual Interest Rate	Average Monthly Payment

Ready to look for a car loan in Louisiana? Here’s what you need to do.

Check your credit

Begin by reviewing your credit score. You’ll likely need a score that’s 660 or better so that you can get a loan with a good interest rate. If your score is above average (e.g. 700 or above), you may qualify for an interest rate of 3% or lower. The national average, however, is closer to 5%.

Use the table below to estimate your average interest rate and monthly payment based on your credit rating.

Credit Rating

Loan Terms	Average Annual Interest Rate	Average Monthly Payment

Compare lenders

Be mindful not to just take the first loan offer presented to you. There’s a lot of convenience that comes with securing a car loan via your dealership, but that convenience comes at a price. More often than not, a car loan through a dealership benefits the dealer more than you.

Before you decide, be sure to compare offers from at least three lenders. Try to find a lender that can give you a good (i.e. low) interest rate, but consider other factors too, like approval odds and customer service.

Choose your loan term

An important aspect of your car loan that’s negotiable is the loan term—i.e., the period of time over which you’ll pay off the balance. The average car loan term in Louisiana is between 60 months and 72 months.

While your monthly payments will be lower with a longer loan term, you will end up paying more in interest over time, making the longer loan term the more expensive option. Your goal should be to push for the shortest loan term that works best with your finances, ideally no more than 60 months.

Here’s how your APR and monthly payment could change based on your loan term in Louisiana.

Credit Rating	Average Annual Interest Rate	Average Monthly Payment

MORE: How to buy a car from a private seller

Get preapproved

Always get pre-approved for a car loan if possible.

Being pre-approved gives you an advantage when negotiating at the dealership or with a private seller. Once you know the loan amount you’re approved for and the monthly payment you’ll be making, you can negotiate with confidence to ensure you get a great deal on your car.

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

Yes. You can finance a used car purchase with a car loan, but there are some caveats:

Your interest rate will probably be higher (often close to 8%).
Some lenders include car age limits in their loan eligibility requirements.
Many lenders have a minimum loan amount that may fall below the price of a used car. A loan from a credit union may be a suitable option in this case.

Want to see how the age of your car could affect your car loan in Louisiana? Take a look at this table.

Car Make

Car Year	Average Annual Interest Rate	Average Monthly Payment

MORE: Lemon law Louisiana

Louisiana car loan calculator

Now that we’ve gone through the process of securing a car loan, it’s time to add it all up! Use Jerry’s car loan calculator to determine how much you could pay for a car loan in Louisiana and what interest rate you can look for based on your credit score, loan term, loan amount, and car make.

These values are averages—so keep in mind when you meet with your lender to sign the loan agreement, your interest rate and loan term are negotiable, as are any additional fees or penalties. Use this tool to set yourself up for scoring the best deal coming out of loan negotiations!

Car Make

Credit Rating

Loan Terms

Loan Amount

Average Annual Interest Rate	Average Monthly Payment

MORE: What is a good interest rate on a car

How to find affordable car insurance in Louisiana

Auto financing is just the beginning—before you can hit the road with your new (or used) car, you’ll need to buy car insurance according to Louisiana’s minimum legal requirements.

Make the process as smooth as possible with the Jerry app! As a licensed broker, Jerry can search for and analyze quotes from over 50 top insurance companies in just 45 seconds.

Review your quotes and choose the rate that works best for you. Then, Jerry will handle all the paperwork to get you set up with your new low rate and even help you cancel your old policy.

“I moved states recently and my old provider didn’t cover me anymore, so I tried using Jerry. They handled everything from fetching the quotes to purchasing the new policy. Now I save $30 a month with Progressive!” —Kay J.

FAQs

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

You want to aim for a credit score of at least 660 to qualify for a car loan in Louisiana. If you have a lower credit score, you still have options, but approval will be harder. You will definitely need to shop around for the right lender.

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

It depends on the bank. Many banks do offer loans for used cars, but some have restrictions on the age and/or price of the car. You will need to shop around for a lender that meets your needs.