With the right credit score, 660 or above, a competitive car loan can be within your reach. This means low interest rates for Mississippi residents with a term length no longer than 60 months..
Applying for a car loan can be a tricky process. Luckily, the
car insurance and loan super app
Jerry has you covered.
Here, we’ll cover everything you need to know about car loans in Mississippi—from comparing lenders to negotiating the best deal.
How to get a car loan in Mississippi
Car loans can be acquired from various lenders—banks, credit unions, and even certified dealerships. A loan allows the purchaser of a new vehicle to pay over an extended amount of time. This payment method is helpful for those looking to circumvent a cash purchase.
If you’re looking for a car loan in Mississippi, expect the following:
- A down payment worth 10% of the vehicle’s value
- Negotiating a term length with your lender
- Dividing your loan principal (total value) into monthly payments
- An interest rate based on your annual percentage rate (APR).
Monthly payments are based on the vehicle model, length of the agreement, and your credit score. For estimates on how APR will affect monthly payments, explore the table below.
Car Make | Average Annual Interest Rate | Average Monthly Payment |
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Ready to get the gears turning on a new car loan? We’ve got a few tips.
Check your credit
Before looking for a lender, you’ll want to check your credit score—the numeric expression of your risk as a lendee. A good credit rating for car loans is 660 or above. This score will grant you access to interest rates of about 5%.
A 5% interest rate is competitive by national standards, but great credit will open up better opportunities. Those with scores of 700 or more can qualify for rates as low as 3%.
Using this table, see how credit rating will impact your interest rates and monthly payments.
Loan Terms | Average Annual Interest Rate | Average Monthly Payment |
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Compare lenders
When looking for a car loan, it can’t hurt to do a little window shopping. Don’t like your first offer? Look at what interest rates other lenders are offering—and be sure not to overlook factors such as approval rating and customer satisfaction.
As a good rule of thumb, explore at least three different offers before settling on a lender.
Plenty of companies give out convenience loan options—promising a quick and easy loan in exchange for higher interest rates. In most cases, offers that prioritize entry speed should be avoided. Car loans stick with you until the vehicle is paid off. So, be sure to find the right lender for your situation.
Choose your loan term
Crack those knuckles, dust off that handshake, it’s time to get negotiating. Once you’re given an interest rate, you’ll work with your lender to form a loan term—how long it’ll take you to pay off the vehicle. The average loan term is between 60 and 72 months.
A higher loan term will mean lower monthly costs, but you’ll end up paying more because of interest. Still, negotiate a term length that best suits your payment style and budget. A great baseline term for most car loans is 60 months.
The table below demonstrates the impact of term length on APR and monthly payment.
Credit Rating | Average Annual Interest Rate | Average Monthly Payment |
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Get preapproved
Getting preapproved is an excellent strategy to avoid overpaying. Preapproval means an outside lender has already certified you at a specific interest rate, which will give you better negotiating power with the dealership.
Can you get a car loan in Mississippi for a used car?
You can find loans for used cars in Mississippi, but each lender has different rules for the vehicles they will cover. Consider the following when shopping for a loan:
- Used cars come with higher interest rates (about 8%)
- Many lenders have an age limit for used vehicle loans
- Larger institutions may overlook especially small purchase prices.
If your loan is declined based on the purchase price, you may have better luck visiting a credit union. These lenders tend to offer more customizable loan plans.
Use the following table to see how vehicle make will affect APR and monthly payments.
Car Year | Average Annual Interest Rate | Average Monthly Payment |
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Mississippi car loan calculator
It’s time to break it down. With the help of Jerry’s car loan calculator you’ll be able to estimate the average APR and monthly payments for any credit rating, loan term, vehicle make, and purchase price. Use this value to determine what you should be paying when shopping for your loan and negotiating a fair deal.
Average Annual Interest Rate | Average Monthly Payment |
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How to find affordable car insurance in Mississippi
Once you’ve secured a loan, you’re almost ready to hit the road. The next step? Ensure your vehicle is up to snuff with
Mississippi car insurance laws, and use
Jerry to never overpay on the right coverage.
Jerry is a personal insurance broker that lives in your pocket. But don’t worry about buying tiny office furniture, Jerry is an app! Download Jerry, answer a handful of questions, and you’ll immediately get car insurance quotes for coverage similar to your current plan.
The best part? Jerry customers save an average of $887 a year on car insurance.
“I just financed a new car and knew my insurance premium was going to rise.
Jerry was well worth it to use. They helped me find a lower premium and canceled my old policy instantly when I was ready to switch!” —Meghana D.
FAQs
What credit score is needed to buy a car in Mississippi?
You should strive for a credit score of 660 or higher when looking for a car loan in Mississippi. If your score is lower, a lender can still approve your loan—at the cost of higher interest rates and longer term windows.
Will a bank give me a loan for a used car?
Used vehicle loans will depend on the car’s age, model, and policies of the lender you visit. These types of loans will come with higher interest rates. If your bank denies you, a credit union may be able to offer a loan.