Car Loan in Utah 2023

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Car Loan in Utah 2023

Make auto loan refinancing easy with PriceProtect™
No long forms · No spam · No rush
Jerry, Inc.
If you have a credit score of 660 or higher, you’re in a good position to qualify for a car loan. The best car loans have a low interest rate and a short loan term so that you can pay it off in 60 months or less.
From interest rates to loan terms, there is a lot that you need to understand before you take out a car loan. Being familiar with the process of getting a loan will set you up for success when you go to buy a car.
This guide compiled by the car insurance broker Jerry can tell you everything you need to know about getting a car loan in the state of Utah.

How to get a car loan in Utah

If you can’t afford to buy a new car outright, don’t worry. Most people take out a car loan when they go to buy a car, and there is nothing wrong with you doing the same. A car loan allows you to pay off the value of a car in monthly payments, rather than all at once.
You can take out a car loan from a few different places, such as a credit union or a dealership, but the most common place to take out a loan is a bank.
When you take out a car loan in Utah, the process will look something like this:
  • You’ll pay a down payment for the value of the vehicle you are buying. This payment will be at least 10% of the car’s value, but many people end up paying around 20%.
  • You’ll negotiate a loan term with your lender. This is the period during which you’ll pay off the loan.
  • You’ll settle on an interest rate, which is mostly based on your credit score. The car you are looking to buy can also affect your interest rate.
Once everything is settled and your car has been purchased, you will begin paying off your loan in monthly increments. The monthly interest that you pay will correspond with your annual percentage rate (APR).
The table below can help give you an idea of what your payments will look like based on your APR.
Car MakeAverage Annual Interest RateAverage Monthly Payment
ALFA ROMEO8.19$359
Land Rover8.19$359
If you’re ready to get started looking for a loan, here are some tips that you should keep in mind. MORE: How to reduce car payments without refinancing your car loan

Check your credit

The first thing you should do if you’re looking to get a car loan is to check your credit score. Your credit score will have a significant impact on the loan offers you receive.
If you have a credit rating of 660 or higher, you will likely qualify for a loan with a decent interest rate. If you have a lower credit score, you may find it difficult to find a lender willing to work with you.
The average interest rate for a car loan is around 5%. If you have a credit score of 700 or higher, it could look more like 3%.
The table below will help you see what your interest rate could look like based on your credit score.
Loan TermsAverage Annual Interest RateAverage Monthly Payment

Compare lenders

It’ll be tempting to accept your first offer for a loan, especially if the dealership you’re buying a car from offers to handle it for you. However, you should never accept an offer without comparing a few different lenders. Shopping around is one of the advantages you have as a buyer, and by comparing at least three different lenders, you have a higher chance of getting a loan with a low interest rate.

Choose your loan term

Your loan term dictates how many months you’ll take to pay back the loan. The average length of a car loan term is 60 months to 72 months.
Ideally, you want to take out a car loan with a loan term of 60 months or shorter. This is because the longer a loan term is, the more you’ll have to pay in the long run.
You have to pay interest on your loan each month, so with a longer loan term, you will end up paying more in interest. To save yourself money, opt for the shortest loan you can realistically afford.
This is how your APR and payments could change based on your loan term:
Credit RatingAverage Annual Interest RateAverage Monthly Payment
Very Good5.04$340

Get preapproved

When looking to buy a car, one of the best things you can do is get preapproved on your car loan. When you get preapproved, your lender will provide an estimate for your interest rate and the total amount that they’ll finance.
Being preapproved is an advantage when it comes to buying a car since you’ll be armed with a much better understanding of your finances while at the dealership.

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

The short answer is, probably. Most banks will provide you with a loan for a used car, but:
  • A car loan for a used car will have a higher interest rate, probably around 8%.
  • Many lenders have a limit on the age of a car they’ll provide a loan for (under 10 years old).
  • Most banks have a minimum for the value of a car loan. If you’re buying a very cheap used car, you might have more luck with a loan from a credit union.
If you’re wondering how a car’s age might affect your loan, take a look below:
Car YearAverage Annual Interest RateAverage Monthly Payment

Utah car loan calculator

Since there are so many variables that go into a car loan, it can be difficult for buyers to find an estimate for the loan they might be offered. The Jerry car loan calculator can help, since it takes things like your credit score and desired loan term into account.
Keep in mind that the calculator is based on averages in Utah, so your lender may present you with slightly different numbers.
Average Annual Interest RateAverage Monthly Payment

How to find affordable car insurance in Utah

Since Utah has laws that require auto insurance for every vehicle, finding a car loan isn’t the only thing you have to figure out before enjoying your new ride. If you need to find cheap car insurance fast, Jerry can help.
Jerry is a super app that allows you to compare car insurance plans from over 50 of the top carriers in the country. It takes just seconds to sign up, and there is a team of experienced agents standing by to help you once you find a plan you like.
The best part is the average Jerry user saves $887 a year on their insurance payments.
Jerry found me useful quotes immediately, so I switched over my insurance in under an hour! I’m now helping my parents use Jerry because they just bought a new car.” —Brindi J.


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

A credit score of 660 or higher will make it much easier to qualify for a car loan with a good interest rate. It may be possible to get a car loan with a lower credit score, but it will mean paying more in interest

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

Many banks are willing to work with you even if you are buying a used car, although the interest rates on your loan will be high. If you’re buying a very inexpensive car, you may be better off working with a credit union.

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