Before you take out a car loan in Rhode Island, you’ll want a credit score of 660 or above to get a low interest rate and a loan term of 60 months or less.

You have a lot of options to consider when it comes to negotiating a new car loan, so car insurance and loan super app Jerry is here to help you figure out what options work for you.

In this article, Jerry guides you through the process of researching, assessing, and comparing your unique financing options for your next car loan in the Ocean State.

How to get a car loan in Rhode Island

When you’re getting a new car in Rhode Island, a car loan from a bank, a credit union, or the dealership where you plan on buying is the most common way to help finance the purchase. By doing so, you’re able to pay off the car’s selling price over a set amount of time instead of paying a hefty lump sum at the time of purchase.

You can expect the following when taking out a car loan in Rhode Island:

Putting forward a down payment (typically 10% or more of the total payment)
Finalizing your loan term (i.e. the time in which you’ll pay off the loan) and the interest rate with your lender
Monthly payments on the loan principal (i.e. the amount of money covered by the loan) until the loan term has finished
Monthly interest payments as determined by your annual percentage rate (APR) Factors like your credit score, your loan term, and the specific type of car you plan on buying will play a role in determining the final details of your car loan. The table below shows the average APR and monthly payment for a car loan in Rhode Island.

Credit Rating

Car Make	Average Annual Interest Rate	Average Monthly Payment
ACURA	7.96	$359
ALFA ROMEO	8.01	$359
ASTON MARTIN	8.01	$359
AUDI	8.12	$360
BENTLEY	8.01	$359
BMW	8.49	$364
BUICK	8.04	$360
CADILLAC	8.27	$362
CHEVROLET	8.04	$360
CHRYSLER	8.29	$362
DODGE	8.14	$361
FERRARI	8.01	$359
FIAT	8.07	$360
FORD	8.04	$360
GENESIS	8.01	$359
GMC	7.99	$359
HONDA	7.85	$358
HYUNDAI	8.04	$360
INFINITI	8.14	$361
JEEP	7.85	$358
Jaguar	8.01	$359
KIA	8.22	$361
LAMBORGHINI	8.01	$359
LEXUS	7.99	$359
LINCOLN	8.12	$360
LOTUS	8.01	$359
Land Rover	8.01	$359
MERCEDES-BENZ	8.01	$359
MINI	8.01	$359
MITSUBISHI	8.14	$361
Maserati	8.01	$359
Mazda	8.01	$359
NISSAN	8.09	$360
POLESTAR	8.01	$359
PORSCHE	8.13	$360
RAM	8.04	$360
ROLLS-ROYCE	8.01	$359
Subaru	8.01	$359
TESLA	8.39	$363
TOYOTA	7.85	$358
VOLKSWAGEN	8.04	$360
VOLVO	7.88	$358

Feel good about what to expect for a car loan in Rhode Island? Here’s what you need to do next.

Check your credit

You’ll want a credit score of 660 or better to negotiate a loan with a good interest rate in line with the 5% national average. However, if your score exceeds 700, you may be able to negotiate an interest rate as low as 3% or lower.

You can estimate your interest rate and monthly payment using averages based on your credit rating from the table below.

Credit Rating

Loan Terms	Average Annual Interest Rate	Average Monthly Payment
24	10.49	$693
36	8.26	$469
48	7.78	$361
60	7.72	$299
72	7.99	$260

MORE: Rhode Island electric vehicle incentives

Compare lenders

Make sure you are getting the best loan option by comparing offers from at least three lenders. You may be tempted to take the first loan you’re offered just to get it over with, but you may be hurt by the agreement as time goes on.

In addition to financial satisfaction, look for a lender who can offer you customer satisfaction. Once you know the offers on the table, take time to research the lender’s customer services, approval odds, and satisfaction ratings. Once you know who can offer you the best overall package, you’re ready to start finalizing your loan.

Choose your loan term

As you finalize the details of your loan with your lender, try to negotiate a short loan term—i.e. the number of months you’ll be making payments. Loan term averages in Rhode Island range from 60 to 72 months.

A longer loan term will lower your base monthly payments, but you’ll pay more interest over time making the trade-off more expensive in the long run. Try to negotiate the shortest loan term—ideally no more than 60 months—that you can realistically handle with your monthly finances.

Use the table below to see how loan term length could affect your APR and monthly payments in Rhode Island.

Credit Rating	Average Annual Interest Rate	Average Monthly Payment
Fair	15.03	$407
Good	8.24	$359
Very Good	5.07	$340
Excellent	3.88	$333

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

Get preapproved

Seek preapproval on your car loan before going into the transaction. When you’re able to get preapproved for a loan before going to the dealership, you’ll be able to use these loan details to your advantage. By knowing the exact finances that you could be working with, you’ll be better prepared to negotiate the best deal on your car with confidence.

Key Takeaway Before you decide on a lender, take the time to compare at least three lenders so you know you’re getting the best loan terms available.

Can you get a car loan in Rhode Island for a used car?

Yes, a car loan can also be used to finance a used car purchase in Rhode Island. Here are some differences that you can expect while seeking a used car loan:

A higher interest rate (used car loans carry an average 8% interest)
Certain lenders will not approve a loan for a car over a set age limit
Banks might use minimum loan amounts that are higher than the price of the used car

You can try getting a loan from a credit union if the bank’s minimum amounts exceed your car’s value. Pay close attention to whether or not the interest on a prospective loan outweighs the perks of buying a newer vehicle. You can use the table below to see how your car’s age could affect your used car loan in Rhode Island.

Car Make

Car Year	Average Annual Interest Rate	Average Monthly Payment
2021	7.36	$304
2020	7.67	$307
2019	7.82	$307
2018	7.69	$305
2017	7.84	$307
2016	7.97	$308
2015	8.14	$309
2014	8.11	$378
2013	8.17	$378
2012	8.96	$509
2011	8.96	$509
2010	8.96	$509

MORE: Title transfer in Rhode Island

Rhode Island car loan calculator

Use Jerry’s car loan calculator to take everything we’ve covered so far and see how it all comes together into tangible numbers. Input your credit score, loan preferences, and the make of your desired car to see the loan amount and interest rate you can expect for a car loan in Rhode Island.

Remember that the values shown are only averages—you’ll still have to negotiate the final details of your loan with your lender. However, with these averages in mind, you’ll have plenty of information to lock down the best car loan available to you.

Car Make

Credit Rating

Loan Terms

Loan Amount

Average Annual Interest Rate	Average Monthly Payment
8.06	$360

How to find affordable car insurance in Rhode Island

Once you’ve finalized your loan, it’s time to buy car insurance that meets Rhode Island’s minimum legal requirements. Just like a car loan, you’ll have plenty of options, so car insurance super app Jerry is here to help you find the best (and cheapest) one!

It’s this simple: download the Jerry app or go to getjerry.com. In less than 45 seconds, Jerry collects all of your information from your existing insurer and presents you with competitive quotes from 50-plus top insurance companies. Choose your favorite and Jerry takes care of the rest—securing your new policy and helping you cancel your old one. The average Jerry user saves $887 a year on car insurance.

“I just financed a new car and knew my insurance premium was going to rise. Jerry was well worth it to use. They helped me find a lower premium and canceled my old policy instantly when I was ready to switch!” —Meghana D.

FAQs

What credit score is needed to buy a car in Rhode Island?

A credit score of 660 or higher is ideal to finance a car in Rhode Island. However, if your credit score is lacking, you may just have to look a little harder to find a lender who will approve you.

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

A bank might give you a loan for a used car, but it will depend on the price of the car and the bank’s minimum loan limits. If the used car costs less than a bank’s minimum amount for a loan, then you will likely be denied.