If you’re looking for a car loan in Vermont, it’s best to have a credit score of 660 or higher. The best car loans have a short loan term and a low interest rate, so you’ll want to compare multiple lenders until you find the right loan.

Getting a car loan is a lot less complicated than it might seem. Once you know all the terminology and have a basic idea of the process to get a loan, it won’t be too difficult to secure one and finally purchase your new car.

If you’re looking to get started trying to get a car loan in Vermont, the car insurance broker Jerry is here to help. Read on to learn everything that you need to know.

How to get a car loan in Vermont

Most people don’t have the money to just buy a new car outright. Instead, the majority of drivers in Vermont take out a car loan that allows them to pay off their car in monthly payments. The most common place to take out one of these car loans is a bank.

When you take out a car loan in Vermont, here is what you can expect:

You will make a down payment. It’ll probably be between 10% to 20% of the car’s total value.
You and the lender you are working with will determine a loan term. This is how long you’ll have to pay off your loan.
You and the lender will settle on an interest rate. This rate is based primarily on your credit score.

After everything is squared away, you’ll be able to drive your car home and begin to make monthly payments. You’ll owe monthly interest according to your annual percentage rate (APR).

How much you end up paying throughout your loan depends on your credit score, the make of the car you are looking to buy, as well as your loan term.

For an idea of how your loan will look based on your APR, take a look below.

Credit Rating

Car Make	Average Annual Interest Rate	Average Monthly Payment
ACURA	8.1	$360
ALFA ROMEO	8.16	$361
ASTON MARTIN	8.16	$361
AUDI	8.27	$362
BENTLEY	8.16	$361
BMW	8.67	$365
BUICK	8.19	$361
CADILLAC	8.43	$363
CHEVROLET	8.19	$361
CHRYSLER	8.45	$363
DODGE	8.29	$362
FERRARI	8.16	$361
FIAT	8.21	$361
FORD	8.19	$361
GENESIS	8.16	$361
GMC	8.13	$360
HONDA	7.98	$359
HYUNDAI	8.19	$361
INFINITI	8.29	$362
JEEP	7.98	$359
Jaguar	8.16	$361
KIA	8.37	$363
LAMBORGHINI	8.16	$361
LEXUS	8.13	$360
LINCOLN	8.27	$362
LOTUS	8.16	$361
Land Rover	8.16	$361
MERCEDES-BENZ	8.16	$361
MINI	8.16	$361
MITSUBISHI	8.29	$362
Maserati	8.16	$361
Mazda	8.16	$361
NISSAN	8.24	$361
POLESTAR	8.16	$361
PORSCHE	8.28	$362
RAM	8.19	$361
ROLLS-ROYCE	8.16	$361
Subaru	8.16	$361
TESLA	8.56	$364
TOYOTA	7.98	$359
VOLKSWAGEN	8.19	$361
VOLVO	8.01	$359

If you’re ready to start looking for a loan in Vermont, consider the following tips.

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Check your credit

The first step you need to take if you’re looking for a car loan is to check your credit. Your credit score determines if lenders will be willing to work with you, as well as how high your interest rate will be.

If you have a credit rating of 660 or higher, you’re likely to qualify for a loan with a good interest rate. If you have a credit rating of 700 or higher, you may be able to find a loan with an interest rate as low as 3%. If you have a poor credit rating, it may be difficult to find a lender who will work with you—or at least one that will offer you a decent interest rate.

The table below will show you what your monthly payments could look like based on your credit score.

Credit Rating

Loan Terms	Average Annual Interest Rate	Average Monthly Payment
24	10.59	$694
36	8.42	$470
48	7.92	$363
60	7.87	$300
72	8.14	$261

Compare lenders

You’ll probably be tempted to accept the first loan offer you receive since it will mean getting behind the wheel a little bit faster. Still, you should never accept a loan offer without first comparing at least three lenders.

If you compare multiple lenders, you’ll have a better chance of finding a loan with a low interest rate. You can also keep a lookout for lenders with good customer service.

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Choose your loan term

On top of your interest rate, the next most important detail about your car loan is the loan term. The loan term is the number of months you’ll make payments on your car. The average loan term is around 60 months to 72 months.

Even though a longer loan might seem like the better option, since the individual payments are lower, they are generally worse. The more individual payments you make, the more expensive your loan is. That’s because you’ll pay more in interest than you would if you chose a shorter loan term.

With this in mind, you’ll want to choose the shortest loan term you can afford. A loan term of 60 months is recommended if you want to keep the total cost of your loan down.

This is how your monthly payments might look based on your loan term.

Credit Rating	Average Annual Interest Rate	Average Monthly Payment
Fair	15.4	$410
Good	8.42	$361
Very Good	5.11	$341
Excellent	3.89	$333

Get preapproved

One of the best things you can do when buying a car is to get preapproved. When a lender preapproves you, they provide an estimate for your impending loan’s interest rate and give you a good idea of the amount they are willing to finance.

By getting preapproved, you will have more power when negotiating with a dealership, since you better understand your financial position (i.e., how much you have available to spend).

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

Yes, you can usually get a loan for a used car. There are a few differences when it comes to used car loans, however:

The interest rate is usually higher—you can expect around 8%
Many lenders have an age limit on the cars they are willing to approve loans for
Most banks have a minimum value for car loans they will approve—you may have to work with a credit union if you need a small loan

Looking to buy something vintage? The table below will give you an idea of how the age of the car you want to buy will affect your payments.

Car Make

Car Year	Average Annual Interest Rate	Average Monthly Payment
2021	7.48	$305
2020	7.81	$308
2019	7.98	$308
2018	7.83	$307
2017	8	$308
2016	8.13	$309
2015	8.29	$310
2014	8.27	$379
2013	8.33	$380
2012	9.1	$510
2011	9.1	$510
2010	9.1	$510

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Vermont car loan calculator

From interest rates to terms, there is a lot that goes into each car loan. Because of all the variables, it can be hard to find a decent estimate for a potential car loan.

Jerry’s car loan calculator can take everything from your credit score to the age of the car you want to buy into account and provide you with an estimate. Keep in mind that the calculator is just an estimate based on averages in Vermont and will probably not provide you with the same numbers that a lender will.

Car Make

Credit Rating

Loan Terms

Loan Amount

Average Annual Interest Rate	Average Monthly Payment
8.2	$361

How to find affordable car insurance in Vermont

Even after you’ve secured a car loan and found the car you want to buy, the process isn’t over. Vermont has minimum requirements for auto insurance, so you’ll have to find a plan for your car before you get behind the wheel.

If you don’t want to spend hours looking through insurance options, you should download the car insurance comparison app Jerry. Jerry can provide you with affordable quotes in just a few minutes, and if you find a plan you like, Jerry’s team of experienced agents will help you get set up. The average Jerry user saves $887 every year on their car insurance payments.

“I was struggling because I wanted great insurance for my new car. Jerry was so helpful, and the team answered all of my questions. Now I have the policy type I was looking for!” —Avery W.

FAQs

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

Generally, you’ll want a credit score of 660 or more if you want to find a car loan with a good interest rate. Most lenders will only offer you loans with a high interest rate if you have a credit score lower than 660.

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

Some banks will be willing to give you a loan for a used car, but it will have a higher interest rate than it would if the car you were buying was new. If you need just a small loan to buy a used car, you should consider working with a credit union instead.