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.

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

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.

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

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 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

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

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 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: How to get a cosigner for a bad credit car loan

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!

Car Make

Credit Rating

Loan Terms

Loan Amount

Average Annual Interest Rate	Average Monthly Payment
8.76	$364

MORE: New Jersey Electric Vehicle Incentives

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.