To qualify for a car loan in Montana, you will likely need a credit score of 660 or higher. Optimally, you’ll want to find a loan with a low interest rate and a term that doesn’t exceed 60 months.

Car insurance and loan super app Jerry is here to break down how to get approved for a car loan in Montana.

We’ll review each step you need to take to compare lenders and secure a loan while explaining the role your credit score will play when it comes to finding a car loan in Montana.

How to get a car loan in Montana

Car loans allow borrowers to buy a vehicle at a purchase price they cannot afford outright but will instead pay off over several years. The terms of the loan agreement dictate how long a borrower has to repay the loan.

In Montana, a car loan is the most common way to finance the purchase of a vehicle. Loans can be provided by a financial institution like a bank or a credit union, or often the dealership selling the car can provide financing.

If you take out a car loan in Montana, you can expect the following:

You’ll make a down payment, which is usually a minimum of 10% of the total value of the vehicle
You’ll select a loan term (i.e., the duration of your loan agreement) and negotiate the interest rate with the loan provider
You’ll repay the principal (vehicle’s purchase price) of the loan in monthly installments over the term
You will also be required to pay monthly interest per your annual percentage rate (APR)

The details of your loan depend on several factors, including the make and model of the car you’re buying, your credit score, and your loan term. Review the below table to see what your APR and monthly payment could be for a Montana car loan.

Credit Rating

Car Make	Average Annual Interest Rate	Average Monthly Payment
ACURA	8.62	$363
ALFA ROMEO	8.69	$363
ASTON MARTIN	8.69	$363
AUDI	8.84	$364
BENTLEY	8.69	$363
BMW	9.39	$369
BUICK	8.73	$364
CADILLAC	9.05	$366
CHEVROLET	8.73	$364
CHRYSLER	9.09	$366
DODGE	8.88	$365
FERRARI	8.69	$363
FIAT	8.77	$364
FORD	8.73	$364
GENESIS	8.69	$363
GMC	8.66	$363
HONDA	8.47	$361
HYUNDAI	8.73	$364
INFINITI	8.88	$365
JEEP	8.47	$361
Jaguar	8.69	$363
KIA	8.98	$366
LAMBORGHINI	8.69	$363
LEXUS	8.66	$363
LINCOLN	8.84	$364
LOTUS	8.69	$363
Land Rover	8.69	$363
MERCEDES-BENZ	8.69	$363
MINI	8.69	$363
MITSUBISHI	8.87	$365
Maserati	8.69	$363
Mazda	8.69	$363
NISSAN	8.8	$364
POLESTAR	8.69	$363
PORSCHE	8.87	$365
RAM	8.73	$364
ROLLS-ROYCE	8.69	$363
Subaru	8.69	$363
TESLA	9.23	$368
TOYOTA	8.47	$361
VOLKSWAGEN	8.73	$364
VOLVO	8.51	$362

Are you ready to get a car loan in Montana? Here’s what you need to do.

Check your credit

The first step is to check your credit score. You want a score that’s at least 660 or higher. This will go a long way toward securing a good interest rate.

If you have an above-average score of 700 or higher, you could qualify for a low interest rate of 3% or less. Keep in mind, the national average is around 5%.

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

Credit Rating

Loan Terms	Average Annual Interest Rate	Average Monthly Payment
24	11.85	$701
36	8.97	$473
48	8.42	$365
60	8.32	$303
72	8.67	$264

Compare lenders

You don’t have to agree to the first loan offer you get. Even if you’re buying from a dealership and they offer to handle the financing, you could find a more favorable loan from a different lender.

The best strategy is to compare offers from a minimum of three lenders—the more, the better. You want a lender that will give you a low interest rate, offer fair approval odds, and provide quality customer service.

Choose your loan term

The loan term of a car loan is negotiable. The loan term is defined as the period of time over which you must pay the entirety of the loan back. The average car loan term in Montana is between 12 months and 84 months.

What’s important to understand is that the longer the loan term, the lower your monthly payments will be but the higher the total interest you’ll pay. So a longer loan is, ultimately, more expensive. We suggest trying to get the shortest loan term (less than 60 months) that works with your finances.

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

Credit Rating	Average Annual Interest Rate	Average Monthly Payment
Fair	17.39	$420
Good	8.6	$362
Very Good	5.14	$341
Excellent	3.9	$333

Get preapproved

If possible, you should always get preapproved for a car loan. Getting preapproved lets you negotiate from a position of power after you’ve chosen the car you want from a dealership or a private seller. If you know how much you’re approved for, you can relay that information with confidence and determine if the seller can meet your needs.

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

It is possible to finance a used car purchase with a car loan in Montana. But it’s important to recognize the following:

A used car loan may have a higher interest rate, often close to 8%
Some lenders may refuse to approve loans for cars that are a certain age
Many banks have a minimum amount for car loans, so if you need a small loan for a used car, going to a credit union probably makes more sense.

Want to see how the age of your car could affect your Montana car loan? Have a look at this table.

Car Make

Car Year	Average Annual Interest Rate	Average Monthly Payment
2021	7.87	$306
2020	8.31	$310
2019	8.46	$310
2018	8.27	$309
2017	8.48	$310
2016	8.65	$311
2015	8.85	$313
2014	8.82	$382
2013	8.9	$382
2012	9.89	$514
2011	9.89	$514
2010	9.89	$514

MORE: Seat-belt laws in Montana

Montana car loan calculator

We’ve covered a lot so far about car loans. The question now is what does this all add up to? Use Jerry’s car loan calculator to determine how much you may end up paying for your car loan in Montana. Find out what interest rate you should expect based on your loan term, credit score, loan amount, and the make and model of your car.

Remember that these values are averages. When you meet with your lender to sign your agreement, your interest rate, loan term, and any additional fees or penalties are negotiable. This tool can help give you a leg up when negotiating a loan.

Car Make

Credit Rating

Loan Terms

Loan Amount

Average Annual Interest Rate	Average Monthly Payment
8.76	$364

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How to find affordable car insurance in Montana

Getting the necessary financing to buy your car is an important first step. The next step should be finding the right car insurance.

Download the app and then let licensed broker Jerry analyze competitive quotes from more than 50 top insurance companies. You can review quotes right in the app and choose the one that’s best for you, your car, and your budget.

Jerry delivers the convenience and expertise of a top-notch insurance shopping assistant. So much so, Jerry users save an average of $887 a year on car insurance!

“WOW. Jerry has been so easy to use. I called a representative when I wanted some clarification, and they walked me through the entire process of finding a new rate for full coverage on my luxury vehicle.” —Beth G.

FAQs

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

It’s usually best to have a credit score of 660 or above to qualify for a Montana car loan. If your credit score is low, you could still find a lender willing to give you a loan.

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

It’s possible. Some banks will not lend below a certain minimum amount. This means if the used car you’re buying has a low enough purchase price, a bank might not be willing to make the funds available to you.