A credit score of 660 or above will help qualify you for better interest rates when applying for a car loan in Massachusetts. It is also best to get a loan term of 60 months or less.

Getting a car loan can be intimidating, which is why the car insurance app, Jerry, has gathered all the information you need to secure the best loan possible.

Find out how you can get a car loan, what to look for when you compare different lenders, and how your credit score affects the interest rates when you’re getting a car loan in Massachusetts.

How to get a car loan in Massachusetts

Paying for the total cost of a car in one go can be impractical for most people. Instead, most people will apply for a loan from a bank, credit union, or dealership, and pay it back in installments over time. This lets the buyer drive the car right away without having to pay the entire amount at once.

Below are the basic steps you can expect when getting a loan in Massachusetts:

Pay a down payment of 10% or more of the car’s value.
Negotiate with the lender and settle on the interest rate and loan term.
Pay the loan principal (the total amount to be paid back) over your loan term.
Pay the monthly interest, calculated by your annual percentage rate (APR).

The type of car you are purchasing, the loan term, and your credit score all play a role in the loan amount the lender will qualify you for.

In the table below, you can see what your potential APR and monthly payments for a car loan in Massachusetts would look like.

Credit Rating

Car Make	Average Annual Interest Rate	Average Monthly Payment
ACURA	8.28	$361
ALFA ROMEO	8.35	$361
ASTON MARTIN	8.35	$361
AUDI	8.47	$362
BENTLEY	8.35	$361
BMW	8.94	$366
BUICK	8.38	$362
CADILLAC	8.66	$364
CHEVROLET	8.38	$362
CHRYSLER	8.69	$364
DODGE	8.5	$363
FERRARI	8.35	$361
FIAT	8.41	$362
FORD	8.38	$362
GENESIS	8.35	$361
GMC	8.32	$361
HONDA	8.16	$360
HYUNDAI	8.38	$362
INFINITI	8.5	$363
JEEP	8.16	$360
Jaguar	8.35	$361
KIA	8.6	$363
LAMBORGHINI	8.35	$361
LEXUS	8.32	$361
LINCOLN	8.47	$362
LOTUS	8.35	$361
Land Rover	8.35	$361
MERCEDES-BENZ	8.35	$361
MINI	8.35	$361
MITSUBISHI	8.5	$363
Maserati	8.35	$361
Mazda	8.35	$361
NISSAN	8.44	$362
POLESTAR	8.35	$361
PORSCHE	8.5	$363
RAM	8.38	$362
ROLLS-ROYCE	8.35	$361
Subaru	8.35	$361
TESLA	8.81	$365
TOYOTA	8.16	$360
VOLKSWAGEN	8.38	$362
VOLVO	8.19	$360

Once you’re ready to get a car loan in Massachusetts, here are a few tips for you to keep in mind.

Check your credit

Try to check your credit score before you go to the dealership so you have an idea of the interest rates you could get. A credit score of 660 or higher could approve you for better interest rates. If you have a credit score above average (700 or higher), you could qualify you 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.

Credit Rating

Loan Terms	Average Annual Interest Rate	Average Monthly Payment
24	11.17	$697
36	8.6	$471
48	8.09	$363
60	8.03	$301
72	8.31	$262

Compare lenders

Don’t rush the loaning process! Instead of going for the first offer you get, compare different offers so you can get the best loan possible.

Try to analyze offers from at least three lenders before picking your lender. While getting a low interest rate is important, you should also consider which lender will most likely approve your loan, and who has good customer service. You will have to deal with the lender until the end of your loan term so you’ll want to have pleasant interactions.

Choose your loan term

The loan term refers to how long you will make regular payments to pay off your loan balance. This is often paid monthly or bi-weekly, depending on your preference. You can negotiate the loan term that accommodates your budget. The average car loan term in Massachusetts can range from 60 to 72 months.

If you want lower monthly payments, you could get a longer loan term. However, you will also be paying interest for a longer time. As a result, the total cost of your car could be much higher. The best thing to do is to negotiate the shortest affordable loan term for your budget—aiming for 60 months or less.

Refer to the table below to see how the loan term in Massachusetts can change your APR and monthly payment.

Credit Rating	Average Annual Interest Rate	Average Monthly Payment
Fair	16.19	$413
Good	8.42	$361
Very Good	5.11	$341
Excellent	3.89	$333

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

Get preapproved

It’s advantageous to get preapproved for a car loan before you start shopping for a car. This will give you an idea of your budget size so you know what prices to negotiate for. Knowing your loan amount beforehand will give you more confidence in negotiating for the best price for your car.

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

You can get a car loan to finance a used car in Massachusetts. However, there are disadvantages and restrictions in doing so, such as:

Interest rate as high as 8% for a used car loan.
A car age limit set by the lender could mean your application will be rejected.
A minimum loan requirement set by the lender means small loans could be rejected. For smaller amounts, you can consider getting a loan from a credit union instead.

The age of the car you purchase can impact your car loan in Massachusetts, as seen below:

Car Make

Car Year	Average Annual Interest Rate	Average Monthly Payment
2021	7.63	$305
2020	7.99	$309
2019	8.14	$309
2018	7.98	$307
2017	8.15	$308
2016	8.29	$310
2015	8.47	$311
2014	8.44	$380
2013	8.52	$380
2012	9.42	$511
2011	9.42	$511
2010	9.42	$511

MORE: How to determine the retail value of your used car

Massachusetts car loan calculator

Now that you know how to get a car loan, what loan term to aim for, and what car you want to get, it’s time to tally the expenses. Jerry’s car loan calculator will give you an estimate of your car loan payments in Massachusetts. This is calculated based on the interest rates you can be approved for, the loan amount, the loan term, and the car model.

The values you’ll get from the calculator are averages, but the actual amount is negotiable, such as any additional fees or potential penalties. The loan amount could also vary depending on the terms you settled with the lender. The estimated amount calculated is to give you an idea of what to expect so you are prepared to negotiate a better loan.

Car Make

Credit Rating

Loan Terms

Loan Amount

Average Annual Interest Rate	Average Monthly Payment
8.4	$362

MORE: How to calculate total interest paid on a car loan

How to find affordable car insurance in Massachusetts

While you’re looking for a new loan, you should also look for a new car insurance policy that meets Massachusetts’ minimum legal requirements. We always recommend getting additional coverage to better protect your new car. Jerry can save you from filling out long forms and still find you multiple quotes from more than 50 top insurance providers in one go.

Signing up takes a few seconds, and just by noting your preferences, Jerry can find all the quotes that suit you. You can compare the best quotes in the app to pick the policy that best fits your budget and needs.

Just by using the app, the average Jerry user has happily found $887 in savings on car insurance every year.

“When we added a new car to our family, we were shocked at how high our current insurer was going to hike our rates. We used Jerry for some comparison shopping and are now saving around $1000 a year. Thank you, Jerry!” —Darius P.

FAQs

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

A credit score of 660 or above is needed to get approved for a loan with a lower interest rate in Massachusetts. However, certain lenders could approve a loan even if your credit score is lower than the requirement, but there may be a higher interest rate.

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

Banks that have a minimum loan requirement will reject a loan application that doesn’t meet the minimum. If you only need a small loan, you can try going to a credit union instead.