When you get a car loan in South Dakota, you’ll want to have a credit score of around 660 or higher. It’s best to try to get a low interest rate with a term that is no more than 60 months.

Securing a car loan may seem daunting, but once you get familiar with just a few basic concepts, the process becomes much more straightforward.

Here, car insurance super app Jerry breaks down everything you should know about getting a car loan in South Dakota—from how to apply and compare lenders to how credit score plays a role.

How to get a car loan in South Dakota

For most people, it’s not financially feasible to pay for a new car up front in full—that’s where a traditional loan comes in. By getting a loan through a bank, credit union, or even the dealership itself, you can pay off the price of the car over a number of years instead.

Here’s what to expect when taking out an auto loan in South Dakota:

You’ll give the lender a down payment (usually around 10% of the car’s total value)
You’ll agree on the term of your loan (i.e., the length of time you’ll be paying it off)
You’ll agree on an interest rate with your lender (i.e., what percentage the lender will charge for you borrowing their money)
You’ll make monthly payments on the loan principal (i.e., the total amount you’ll be paying back) over the loan term
You’ll pay a monthly interest fee according to your annual percentage rate (APR) The details of your loan will vary based on other factors like *the type of car you’re buying**, your credit score, and the loan term you decide on. Here’s a table to help get an idea of what your APR and monthly payments might look like with a South Dakota car 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

Once you’re ready to look for a car loan in South Dakota, you’ll want to do the following.

Check your credit

Checking your credit score will always be your first step. You want to make sure that it’s at least 660 or higher in order to secure a loan with a good interest rate. Credit scores even higher than the average (700 and up) may be eligible for interest rates as low or lower than 3%, but the national average is closer to 5%.

The table below can help you estimate your average interest rate and monthly payment based on your credit score.

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

Researching your loan options before agreeing to an offer is crucial. While it may seem convenient to take the first loan your dealership extends to you, keep in mind that the agreement could be more beneficial for them than it is for you.

A good rule of thumb is to compare loan offers from at least three lenders before settling on one. Some key questions you should consider are:

How low are the interest rates?
What are the approval odds?
How responsive is the customer service?

Choose your loan term

Part of your loan agreement that is negotiable is the amount of time you’ll be paying off your balance, or the loan term. In South Dakota, the average loan term runs between 60 months and 72 months.

It’s important to note, while a longer loan term means lower monthly payments, it also means higher interest rates—making the loan more expensive in the long run. A good practice is to try to get the shortest loan term you can manage financially. Ideally, you wouldn’t want a loan term that is longer than 60 months.

Here’s a table showing how your average APR and monthly payment can change based on your loan term in South Dakota.

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: Does financing a car affect insurance rates?

Get preapproved

If you are able to get preapproved for a car loan, you should always do so. When you are preapproved for a loan, you can know ahead of the purchase how much money you’re approved for and what monthly payments you’ll be responsible for making. This puts you in a much better position to negotiate the purchase price of the vehicle with the salesperson or private seller.

Can you get a car loan in South Dakota for a used car?

Yes—you can take out a car loan in South Dakota to purchase a used vehicle. However, you should keep a few limitations in mind:

Used car loans have higher interest rates (usually closer to 8%)
Not all lenders approve loans for cars that are over a certain age
Banks usually set a minimum amount for a car loan—if you need to take out a smaller loan for a used car, you may want to apply for a loan with a credit union instead

Below you can see how the age of your vehicle might affect your car loan in South Dakota.

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: Car insurance for used cars

South Dakota car loan calculator

Now that you’ve gotten familiar with how loans and loan terms work, and how the age of your car might impact your loan options, let’s add it all up with Jerry’s car loan calculator. This tool will help you anticipate what you might pay for a car loan in South Dakota and how your credit score, loan term, loan amount, and car make might impact your interest rate.

While these values are averages, they can allow you to enter negotiations with your lender better prepared. Just keep in mind—your interest rate and loan terms are negotiable, and so are any additional fees and penalties your lender might bring up.

Car Make

Credit Rating

Loan Terms

Loan Amount

Average Annual Interest Rate	Average Monthly Payment
8.76	$364

MORE: What is a prepayment penalty on your car loan?

How to find affordable car insurance in South Dakota

Using a loan to purchase your car is a big first step, but you’ll need to meet South Dakota’s minimum insurance requirements before you can hit the road. To make the search for car insurance as painless as possible, download the Jerry app.

By cross-analyzing custom quotes from over 50 top insurance companies, Jerry instantly tracks down the lowest rates available for your coverage needs. A licensed broker, Jerry can handle all the paperwork when you decide on a policy you like and can even help cancel your old plan for you.

The average user ends up saving $887 a year on car insurance, so it’s definitely worth the free look!

“Jerry was quick and provided me with various choices. I found the policy I wanted in 10 minutes and was able to drive off with my new car!” —Emiya S.

FAQs

What credit score is needed to buy a car in South Dakota?

Generally, you’ll want to have a credit score of 660 or higher to qualify for an auto loan in South Dakota. However, if you don’t have a great credit score, you may still be able to find a lender who is willing to approve you for a loan.

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

Maybe. Some banks set a minimum loan amount, so if the purchase price of your used car is fairly low, you might not be able to get a loan from your bank. You may want to look into getting a loan from a credit union instead.