With a credit score of 660 or above, you can secure a good car loan in Pennsylvania with a low interest rate and a loan term of 60 months or less.

You’ll want to go into negotiations for a car loan with research and confidence, so car insurance and loan super app Jerry is here to go through the basics with you.

In this article, Jerry covers the car loan process from where to look and what factors will affect your options as you get started on financing your next car in the Keystone state.

How to get a car loan in Pennsylvania

It’s very uncommon for buyers to pay full price out of pocket on a new car in Pennsylvania. A car loan from a bank, a credit union, or the dealership where you plan on buying allows you to break the payment down into manageable chunks over a set amount of time.

Here are the basic steps of getting a car loan in Pennsylvania:

Make a down payment on the car (usually around 10% of the total price tag)
Determine a loan term (i.e. the amount of time you’ll be making payments) and an interest rate with your lender
Make payments on the loan principal (i.e. the starting loan amount before interest) every month for the duration of your loan term
Make monthly payments on your loan interest based on your annual percentage rate (APR)

The exact details of your loan are dependent on factors like your credit score, the loan term you negotiate, and what kind of car you’re buying. Use the table below to get an idea of the average APR and monthly payments on car loans in Pennsylvania.

Credit Rating

Car Make	Average Annual Interest Rate	Average Monthly Payment

Now that you know the basics of a car loan in Pennsylvania, here’s what to do next!

Check your credit

Your first step before even looking for your loan is to check your credit score. You’ll need a score of 660 or better to get a loan with a good interest rate in line with the national 5% average. An above-average score (i.e. 700 or higher) could even help you qualify for an interest rate of 3% or lower

Get an idea of the average interest rate and monthly payment based on your credit rating from the table below.

Credit Rating

Loan Terms	Average Annual Interest Rate	Average Monthly Payment

Compare lenders

Your next step is to compare loan offers from at least three lenders before committing to an agreement. The first loan you’re offered may entice you at the moment, but the convenience could trap you in a commitment that ends up benefiting your lender more than you.

Considering loans from multiple lenders allows you to make informed negotiations and choices on the lowest interest rate available to you. It also allows you to compare factors like approval odds and customer service ratings that are also worth considering as you enter a long-term business agreement.

Choose your loan term

In your last steps before finalizing your loan option, you’ll be able to negotiate the loan term—a.k.a. the amount of time you’ll have to pay off your loan. The average car loan term in Pennsylvania is in the range 60 to 72 months.

Your loan term will determine your monthly payments and how much interest you pay. Shorter loan terms require higher monthly payments, but you’ll end up paying less on interest over time than with a longer loan term. That means that the shortest loan term your monthly finances can handle—ideally less than 60 months—is your ** least expensive option in the long run**.

Check average APRs and monthly payments based on car loan terms in Pennsylvania using the table below.

Credit Rating	Average Annual Interest Rate	Average Monthly Payment

MORE: Should you get a 72-month car loan?

Get preapproved

Always get preapproved for your car loan by taking these steps before going into the sale. Getting your loan preapproved gives you an upper hand when you go into negotiations at the dealership—or in any private transaction for that matter. Having your exact approved loan amount and expected monthly payment readily available will empower you to secure the best deal on your new car.

Key Takeaway Getting preapproved, checking your credit rating, choosing a loan term, and comparing lenders can give you an advantage when negotiating the terms of your car loan.

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

Yes. Getting a car loan for a used car basically follows the same process as for a new car in Pennsylvania. The process for a used car, however, includes the following obstacles:

Higher interest rates (expect around 8%)
Lenders may set age limits on the used cars they’re willing to finance
Minimum loan amounts at the bank may exceed the price of the used vehicle

If you need a smaller loan than a bank will offer, try getting a loan from a credit union. The table below shows how the age of your car could impact your used car loan in Pennsylvania.

Car Make

Car Year	Average Annual Interest Rate	Average Monthly Payment

MORE: Pennsylvania car insurance laws

Pennsylvania car loan calculator

You now know the steps to get a car loan, important details to watch out for, and the influence of different variables. Put it all together with Jerry’s car loan calculator to see what your car loan in Pennsylvania might look like based on your credit score, your loan preferences, and the make and model of your car.

The values used by this calculator are averages intended to give you an idea of a hypothetical loan and do not account for additional fees or penalties. The specifics of your actual loan will be up to you and your lender, but you can use these average values to add power to your loan negotiations.

Car Make

Credit Rating

Loan Terms

Loan Amount

Average Annual Interest Rate	Average Monthly Payment

MORE: Pennsylvania electric vehicle incentives

How to find affordable car insurance in Pennsylvania

Car loans are just one step to getting behind the wheel of your new car—you’ll also need to buy car insurance that meets Pennsylvania’s minimum legal requirements.

If you’d rather leave the hard work of gathering quotes to someone else, use car insurance super app Jerry! In less than a minute, the app will collect quotes from more than 50 top insurance companies like Travelers, Nationwide, and Progressive. Choose your pick and Jerry will take care of the grunt work to secure your new policy and cancel any old one.

This Jerry user was thrilled with their experience, giving the app five stars and saving $1140 a year:

“After I bought my new car, the insurance companies tried charging me $315/month. Jerry, on the other hand, found me full coverage for only $220/month. Thank you!” —Mari E.

FAQs

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

You’ll meet the least resistance to qualify for a car loan if your credit score is at 660 or above. If your score falls short, be prepared to have to search a little more to find a lender who will work with you.

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

It depends on the price of the used car and the bank’s loan policies. Some banks impose a minimum loan amount on car loans, so if the used car costs less than this minimum, you will have to look elsewhere. Try a credit union if you need a smaller loan than a bank is willing to offer.