If you’re after a good car loan in New York, you’ll want to have a credit score of 660 or more. Next, look for lenders offering low interest rates and terms of less than 60 months.

Getting approved for an auto loan in New York can seem like an uphill battle, but it doesn’t have to be. That’s why the car insurance broker app Jerry is here to help.

After reading this article, you’ll understand the steps for getting approved for a loan, know how to pick out a good lender, and know how credit scores impact loan approval chances in New York.

How to get a car loan in New York

Since most people don’t have thousands of dollars in cash just lying around, many in New York opt to finance the purchase of a new vehicle with an auto loan. With a loan of this type from a bank, credit union, or dealership, you can break that large purchase price up into smaller monthly payments spread out over several years.

If you’re considering taking out a car loan in New York, here’s what you can expect:

A required down payment of about 10% of the car’s value
Loan term (i.e. how long you’ll be paying off the loan) and interest rate negotiations with the loan provider
Monthly payments for the duration of the loan term
Monthly interest payments determined by your annual percentage rate (APR)

The details of your loan are determined by the type of car you’re buying, your credit score, and the loan term. The table below will help you understand the APR and monthly payments you can expect from a New York car loan.

Credit Rating

Car Make	Average Annual Interest Rate	Average Monthly Payment
ACURA	8.46	$361
ALFA ROMEO	8.53	$362
ASTON MARTIN	8.53	$362
AUDI	8.66	$363
BENTLEY	8.53	$362
BMW	9.17	$367
BUICK	8.56	$362
CADILLAC	8.86	$365
CHEVROLET	8.56	$362
CHRYSLER	8.89	$365
DODGE	8.69	$363
FERRARI	8.53	$362
FIAT	8.6	$362
FORD	8.56	$362
GENESIS	8.53	$362
GMC	8.49	$362
HONDA	8.32	$360
HYUNDAI	8.56	$362
INFINITI	8.69	$363
JEEP	8.32	$360
Jaguar	8.53	$362
KIA	8.79	$364
LAMBORGHINI	8.53	$362
LEXUS	8.49	$362
LINCOLN	8.66	$363
LOTUS	8.53	$362
Land Rover	8.53	$362
MERCEDES-BENZ	8.53	$362
MINI	8.53	$362
MITSUBISHI	8.69	$363
Maserati	8.53	$362
Mazda	8.53	$362
NISSAN	8.63	$363
POLESTAR	8.53	$362
PORSCHE	8.68	$363
RAM	8.56	$362
ROLLS-ROYCE	8.53	$362
Subaru	8.53	$362
TESLA	9.02	$366
TOYOTA	8.32	$360
VOLKSWAGEN	8.56	$362
VOLVO	8.36	$361

Ready to find a car loan in New York? The following steps should aid you in finding the loan that’s best for you.

Check your credit

Your credit score will play an important role in getting approved for an auto loan, so start by checking it. Good interest rates are available for those with a credit score of 660 or more, and those with scores of 700 and up may qualify for interest rates at 3% or less. Currently, the national average for car loan interest rates is about 5%.

Estimate the average interest rates and monthly payments your credit score qualifies you for with the table below.

Credit Rating

Loan Terms	Average Annual Interest Rate	Average Monthly Payment
24	11.63	$699
36	8.8	$471
48	8.25	$364
60	8.15	$301
72	8.51	$263

Compare lenders

Though it may be tempting, resist the urge to accept the first loan offer you get—especially if it comes from the dealership selling your vehicle. Despite the convenience, accepting the loan offer from your dealership may lock you into an agreement skewed in the dealership’s favor.

It’s a good practice to compare offers from at least three lenders before choosing one. Be on the lookout for loan providers offering low-interest rates, good approval odds, and great customer service.

Choose your loan term

The loan term establishes the period over which you’ll be making monthly payments towards the total balance of the loan. This aspect of auto loans is both important and up for negotiation. The average term for auto loans in New York is between 60 and 72 months.

When setting up your loan term, be wary of low monthly payments. Low monthly payments mean a longer loan term as well as more time for interest to accrue. While they may be more affordable month-to-month, they will add up to a more expensive loan in the end. If it’s financially viable for you, try to find a loan term for no more than 60 months.

For an example of how APR and monthly payments in New York are affected by your loan term, check out the table below.

Credit Rating	Average Annual Interest Rate	Average Monthly Payment
Fair	16.92	$415
Good	8.42	$361
Very Good	5.11	$341
Excellent	3.89	$333

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

Get preapproved

Though it may seem like an extra step, you should try to get preapproved for an auto loan. Along with being able to plan for monthly payments and shop for a car with confidence, preapproval gives you additional leverage when negotiating the price of your new vehicle.

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

Yes, auto loans can be used to buy a used car in New York. However, there are some stipulations to be aware of:

Loans for used vehicles come with higher interest rates—often near 8%.
The age of the vehicle will play a part in whether or not you get approval.
Most banks have minimum amount requirements for auto loans. If the loan you need is small, consider taking it out through a credit union.

The table below can show you how your vehicle’s age might affect your auto loan in New York.

Car Make

Car Year	Average Annual Interest Rate	Average Monthly Payment
2021	7.73	$305
2020	8.14	$309
2019	8.28	$309
2018	8.11	$307
2017	8.31	$309
2016	8.47	$310
2015	8.67	$312
2014	8.64	$380
2013	8.71	$381
2012	9.7	$512
2011	9.7	$512
2010	9.7	$512

MORE: How to reduce car payments without refinancing your car loan

New York car loan calculator

Now that you’ve got a better grasp on car loans—how they work, how to choose a loan term, and how the car you’re purchasing will affect them—you’ll need to put it all together. With the help of Jerry’s car loan calculator you can determine the cost and interest rates for an auto loan in New York. Just be sure to have your credit score, loan term, loan amount, and vehicle make ready.

Don’t forget, the values shown here are only averages. You may be able to negotiate a different interest rate or loan term when you sit down with your lender to sign the loan agreement. Be sure to use the data from this too to your advantage when negotiations begin!

Car Make

Credit Rating

Loan Terms

Loan Amount

Average Annual Interest Rate	Average Monthly Payment
8.59	$362

MORE: New York Electric Vehicle Incentives

How to find affordable car insurance in New York

Acquiring the financing you need is just the beginning of owning a new car. The next step is being sure that you’re meeting the minimum insurance requirements set out by New York car insurance laws.

Don’t let the insurance process stress you out—let the Jerry app do the heavy lifting for you. As a licensed insurance broker and super app, Jerry sources quotes from more than 50 insurance companies. On average, drivers who use Jerry save $887 annually on their car insurance costs.

In less than two minutes you can be looking through policy options and possible savings. After you’ve found the insurance plan that’s right for you, Jerry continues to help by filing the paperwork for you and canceling your previous policy. You could be saving hundreds in minutes, so don’t delay!

“Jerry is the future of car insurance! I downloaded the app, entered the information, picked my insurance rate, and paid my fee. I even switched insurance providers easily! Jerry saved me $182/month so quickly!” —Paulina F.

FAQs

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

Most loan providers in New York will want to see a credit score of 660 or better. If you have below-average credit, that’s not a problem. With enough searching, you should find a lender willing to offer you a loan.

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

Sometimes. Though banks offer loans for both new and used cars, they often have a minimum loan amount that you’ll need to meet. If the loan you need is too small for your bank to handle, consider seeking a loan through a credit union.