How do you get the best car loan?
I'm looking for a new car, but I'll need a loan. I'm on a pretty tight budget. What's the best place to get a car loan?
Getting a new car is exciting! It’s definitely possible to get a good car loan, even on a tight budget.
To get the best car loan, there are a few things you can do.
- Shop around: Like car insurance, shopping around with multiple lenders is a great way to find the best loan. Every lender offers different terms, conditions, and interest rates, so looking at several will give you the best options.
- Check your credit: Having good credit is one of the best ways to get a good car loan. Lenders look at financial stability and debt-to-income ratio when extending credit or loans. A good credit score shows lenders you’re reliable and less of a risk.
- Budget: Since you’re already on a tight budget, knowing exactly how much you can spend on a car payment each month is important. If you already have a car in mind, you’ll need to make sure you find a loan that comes with a payment you can afford.
- Be flexible: Even if you have a car in mind, be flexible. If you can’t find a loan with payments that are within your budget, you may need to consider a more affordable car.
While the process might seem overwhelming, the best way to get a good loan is to be prepared. Be sure you make thoughtful decisions and don’t rush into anything! Taking your time will ensure you’re getting the best loan for you and your situation.
Once you do get a loan, be sure you budget for car insurance, as well! Most states require car insurance, so you’ll need a policy to take home your new car. A simple way to find the best deals is with the Jerry app. Jerry gathers personalized quotes from up to 50 top insurance providers, meaning you’ll always get the best price for the coverage you need.
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Read advice from car experts at Jerry
Browse by topics
What others are asking
How do I get a car loan with a 540 credit score?
I want to get a car loan, but I have terrible credit. What can I do to increase my chances of getting approved by a lender?
Oct 26, 2021
How do I transfer my car loan to an online lender?
I have a car loan with my bank, but I found a much better rate (and bonus cash!) for switching to an online lender. How do I transfer the loan?
Oct 26, 2021
How do I win a car insurance claim?
I was backing out of a parking spot and someone hit me. We each think the other is at fault and have both submitted claims to insurance. How do I win the claim?
Oct 26, 2021