Car Loan in Maryland 2023

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Car Loan in Maryland 2023

Make auto loan refinancing easy with PriceProtect™
No long forms · No spam · No rush
Jerry, Inc.
Having a credit score of 660 or above will qualify you for better interest rates when applying for a car loan in Maryland. Ideally, you’ll want to get a loan term of 60 months or less with a low interest rate.
Many buyers find getting a car loan intimidating, which is why the car insurance app, Jerry, has consolidated the information you need to so you can secure the best loan possible.
The article below includes information on how you can get a car loan, help with comparing different lenders, and the effect your credit score will have on interest rates when you’re getting a car loan in Maryland.

How to get a car loan in Maryland

In an ideal world, you would pay for the total cost of the car all at once and drive off from the dealership. However, this isn’t practical. Instead, most people prefer to get a loan from a bank, credit union, or dealership, and pay it back in installments over time. This allows the buyer to drive the car right away without having to use a large amount of cash in one go.
Below are the basic steps to getting a loan in Maryland:
  • A down payment of 10% or more of the car’s value is usually required.
  • You’ll negotiate with the lender and settle on the interest rate and loan term.
  • You’ll pay the loan principal (the total amount to be paid back) over your loan term.
  • You’ll also pay a monthly interest which is calculated by your annual percentage rate (APR).
What type of car you are purchasing, the loan term, and your credit score will play a role in the loan amount you qualify for.
In the table below, you can see what your potential APR and monthly payments for a car loan in Maryland would look like.
Car MakeAverage Annual Interest RateAverage Monthly Payment
ALFA ROMEO8.49$362
Land Rover8.49$362
Here are a few tips to get you started on your car loan in Maryland.

Check your credit

Checking your credit score before going car shopping will give you an idea of what interest rates you might be approved for. The average interest rate is around 5%, but if you have a credit score of 600 or higher, the lender may approve you for a better interest rate. In some cases, those with a credit score above average (700 or higher) could qualify for an interest rate of 3% or lower!
Get an estimate of your average interest rate and monthly payment based on your credit rating using the table below.
Loan TermsAverage Annual Interest RateAverage Monthly Payment

Compare lenders

The first loan offer you get isn’t necessarily the best one. Don’t rush the process and compare different offers so you can get the best loan possible.
You’ll want to take a look at offers from at least three lenders to weigh the pros and cons of each one. You want a good interest rate, but you should also consider which lender will most likely approve your loan and who has the best customer service. After all, you will be dealing with the lender for the duration of your loan term so you want to have pleasant interactions.

Choose your loan term

The loan term is how long you will make regular payments towards your loan balance—this is often paid monthly or bi-weekly. The loan term can be negotiated so the payments fit your budget. The average car loan term in Maryland can range from 60 to 72 months.
A longer loan term means lower payments per month, but it also means you will be paying interest for longer. In the end, the total cost of your car would be higher. It’s best to negotiate for the shortest affordable loan term—60 months or less being the ideal.
Refer to the table below to see how the loan term in Maryland can change your APR and monthly payment.
Credit RatingAverage Annual Interest RateAverage Monthly Payment
Very Good5.11$341

Get preapproved

Getting preapproved for a car loan before you start shopping for a car is beneficial. This will tell you what your budget is so you know what prices to aim for. Being prepared means you’ll have more confidence in negotiating for the best price for your car.

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

You can get a car loan for a used car in Maryland. However, you could face some of the disadvantages and restrictions below:
  • A used car loan could have an interest rate as high as 8%, which is much higher than the average interest rate
  • The lender could have a car age limit and could reject your loan if the car is too old.
  • The lender could have a minimum loan requirement, so an application for a small loan could be rejected. For smaller amounts, you can try getting a loan from a credit union instead.
The age of the car you purchase can impact your car loan in Maryland, as seen below:
Car YearAverage Annual Interest RateAverage Monthly Payment

Maryland car loan calculator

Now that you’re familiar with the steps to getting a car loan, what loan term to aim for, and what car you want to get, it’s time to add up the expenses. Jerry’s car loan calculator will give you a ball-park figure of your car loan payments in Maryland based on the interest rates you can be approved for, the loan amount, the loan term, and the car model.
Keep in mind that the values from the calculator are only averages as the total amount is negotiable, including the additional fees or potential penalties. The loan amount could also depend on the terms that are agreed upon with the lender. This tool is to give you an idea of what amounts to expect so you are prepared to negotiate a better loan.
Average Annual Interest RateAverage Monthly Payment

How to find affordable car insurance in Maryland

Looking for a new car insurance policy that meets Maryland’s minimum legal requirements is just as important as getting a car loan. Additional coverage is always recommended to protect your new car. Instead of filling out tedious forms for a quote from one insurer, Jerry can find you multiple quotes from more than 50 top insurance providers at once.
It only takes a few seconds to sign up and answer some questions about what you’re looking for. Jerry will then find all the quotes that fit your specifications. You can look at all the best quotes in one app before deciding which policy to get.
Switching over to the new policy is a breeze since Jerry will do the paperwork for you—including helping you cancel your old insurance.
The average Jerry user has happily found $887 in savings on car insurance every year.
“Insurance companies originally charged me $189 while driving my BMW 300 miles per year. Thanks to Jerry, I only pay $56! I’m so happy.” —Ray T.


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

You will need a credit score of 660 or above to get approved for a loan with a lower interest rate in Maryland. However, some lenders may approve a loan even if your credit score is lower than the requirement, albeit with a higher interest rate.

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

Banks can have a minimum loan requirement, so a loan that doesn’t meet the minimum may get rejected. If you only need a small loan, try approaching a credit union instead.

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