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Car Loan in New Jersey 2024

Make auto loan refinancing easy with PriceProtect™
No long forms · No spam · No rush

Car Loan in New Jersey 2024

Make auto loan refinancing easy with PriceProtect™
No long forms · No spam · No rush
Jerry, Inc.
If you’re in New Jersey and want to get a good car loan, you’ll need a credit score of 660 or above. After that, you should try to find a loan with a low interest rate and a term of no more than 60 months.
Since getting a car loan in New Jersey can seem confusing and difficult, the car insurance broker app Jerry is here to walk you through the process.
We’ll walk you through the steps for getting a loan, comparing lenders, and understanding how your credit score will affect an auto loan in New Jersey.

How to get a car loan in New Jersey

Though you can pay for your new car in cash, most people take the traditional route of getting a car loan to finance their vehicle purchase in New Jersey. With a bank, credit union, or dealership auto loan, you can take that large, one-time payment and parcel it out over several years.
This is what you can expect when you take out an auto loan in New Jersey:
  • You’ll make a down payment of around 10% of the vehicle’s total value.
  • You’ll choose how long the loan lasts with a loan term and determine the interest rate with the loan provider.
  • You’ll pay off the loan in monthly payments over the loan term.
  • You’ll pay monthly interest based on your annual percentage rate (APR). The fine details of the loan you’ll take out will be based on many things, such as the type of car you’re purchasing, your credit score, and the loan term. Use the table below to get an idea of what your APR and monthly payments will be with a New Jersey auto loan.
Car MakeAverage Annual Interest RateAverage Monthly Payment
ACURA8.62$363
ALFA ROMEO8.69$363
ASTON MARTIN8.69$363
AUDI8.84$364
BENTLEY8.69$363
BMW9.39$369
BUICK8.73$364
CADILLAC9.05$366
CHEVROLET8.73$364
CHRYSLER9.09$366
DODGE8.88$365
FERRARI8.69$363
FIAT8.77$364
FORD8.73$364
GENESIS8.69$363
GMC8.66$363
HONDA8.47$361
HYUNDAI8.73$364
INFINITI8.88$365
JEEP8.47$361
Jaguar8.69$363
KIA8.98$366
LAMBORGHINI8.69$363
LEXUS8.66$363
LINCOLN8.84$364
LOTUS8.69$363
Land Rover8.69$363
MERCEDES-BENZ8.69$363
MINI8.69$363
MITSUBISHI8.87$365
Maserati8.69$363
Mazda8.69$363
NISSAN8.8$364
POLESTAR8.69$363
PORSCHE8.87$365
RAM8.73$364
ROLLS-ROYCE8.69$363
Subaru8.69$363
TESLA9.23$368
TOYOTA8.47$361
VOLKSWAGEN8.73$364
VOLVO8.51$362
Prepared to hunt for a car loan in New Jersey? These are steps for finding the car loan you need.

Check your credit

Begin by checking your credit score. To get a good interest rate, you’ll want a score of 660 or better. You can qualify for an interest rate as low as 3% or lower, but that requires a credit score of 700 or more. If you don’t qualify for the lowest rate, don’t worry. The national average for auto loan interest rates is around 5%.
You can estimate an average interest rate and monthly payment based on your credit score with the table below.
Loan TermsAverage Annual Interest RateAverage Monthly Payment
2411.85$701
368.97$473
488.42$365
608.32$303
728.67$264

Compare lenders

Don’t jump at the first loan offer you receive. If a dealership is selling the car you want, they may offer to handle the loan. While it is convenient, the dealership may be trying to lock you into a loan agreement that’s more in their interest than yours.
You should compare offers from no less than three lenders before you settle on a particular loan. Try to find a lender that will give you a low-interest rate. However, don’t forget about accounting for approval odds or customer service quality.

Choose your loan term

The loan term is the period over which you’ll pay off the balance of the loan. This is an important aspect of getting a quality auto loan and it’s negotiable. In New Jersey, the average car loan term is between 60 and 72 months.
While you can lower your monthly payments by having a longer loan term, you’ll wind up paying more interest. In the long run, that makes for a more expensive loan. Try to find the shortest loan term that fits your budget—preferably no more than 60 months.
Look below to see how your loan term will affect your APR and monthly payments in New Jersey.
Credit RatingAverage Annual Interest RateAverage Monthly Payment
Fair17.39$420
Good8.6$362
Very Good5.14$341
Excellent3.9$333

Get preapproved

You should always try to get preapproved for a car loan. By being preapproved, you’ll be able to shop confidently because you already know the amount of money you’re approved for and the monthly payments you’ll be expected to make.
This knowledge will place you in a stronger bargaining position with a dealership or private seller when you negotiate the price of your new car.

Can you get a car loan in New Jersey for a used car?

Yes, you can finance the purchase of a used car with an auto loan in New Jersey. Just be sure to keep a few things in mind:
  • Used car loans have higher interest rates—normally close to 8%.
  • Some lenders have age limits for the vehicles they will approve for a loan.
  • Banks often have a minimum amount for auto loans. If you need a small loan to purchase a used car, seeking a loan from a credit union may be a better choice.
Check out the table below to see how your vehicle’s age could affect your car loan in New Jersey.
Car YearAverage Annual Interest RateAverage Monthly Payment
20217.87$306
20208.31$310
20198.46$310
20188.27$309
20178.48$310
20168.65$311
20158.85$313
20148.82$382
20138.9$382
20129.89$514
20119.89$514
20109.89$514

New Jersey car loan calculator

Now that you know how car loans function, how to pick a loan term, and how to factor in the kind of vehicle you’re purchasing, it’s time to add it all together. With Jerry’s car loan calculator you can find out how much a car loan in New Jersey will cost and the interest rates available to you. All you need to have on hand is your credit score, your loan term, the loan amount, and the make of your vehicle.
Remember, these values are only averages. The interest rate and loan term are negotiable when you meet your lender to approve the loan agreement, just like the additional fees and penalties they may try to tack on. Use this tool as a point in your favor when you sit down to negotiate your loan!
Average Annual Interest RateAverage Monthly Payment
8.76$364

How to find affordable car insurance in New Jersey

Getting the needed financing is only the first step of owning your new vehicle. Before you can drive your new car home, you’ll need the minimum insurance as required by New Jersey car insurance laws.
Keep the insurance process simple by downloading the Jerry app. As a licensed insurance broker, Jerry will find you quotes from more than 50 insurance providers in less than two minutes. All you need to do is look through the policy options to find one that meets your needs without breaking your budget.
Once you’ve found the coverage that works for you, Jerry will handle the paperwork and even cancel your previous insurance policy for you! On average, Jerry users save $887 every year on their car insurance. With savings like that, why wait? Switch and save with Jerry today!
“This app is all about savings! Jerry just saved me $193/month on my car insurance. They literally found me the cheapest policies out there and with better coverage! Seriously, just sit back and watch Jerry work its magic.” —Rachel B.

FAQs

What credit score is needed to buy a car in New Jersey?

More often than not, you’ll want a credit score of 660 or better to qualify for a car loan in New Jersey. However, with enough searching, you ought to be able to find a lender willing to approve someone with below-average credit.

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

Possibly. While banks often offer loans for purchasing new or used vehicles, some require a minimum loan amount. Your bank may not offer you a loan if the vehicle you want to purchase has a low enough price.

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