PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Loans
Car Loan
Compare Car Loans with Jerry
Jerry's Expert Advice
Car Loan Guides
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
How do you take out a car loan?
I’m in the process of buying a new Acura and I’m stuck between two choices: one is easily affordable but not my favorite and the other is more expensive but has everything I want. I’m considering getting a car loan, but I’m not sure how to do it. How do you take out a car loan?
Chloe Jenkins · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Taking out a
car loan
is a good way to get exactly what you want from a vehicle without having to pay all at once. However, car loans can be a big responsibility and may not be the right choice for everyone. If you don’t feel certain that you could make your monthly payments, the less expensive choice may be the right one for you.If you feel that you can make your monthly payments, follow these general steps to take out a car loan:
- Check your credit, which will help you determine how much you can afford to borrow and approximately what your interest rate will be.
- Get pre-approved by allowing your top choice lenders to do a more thorough credit analysis.
- Find and apply to different lenders. Look to banks, independent online lenders, or dealerships and apply. Compare quotes from each of them to determine your best options.
- Know your budget and stick to it. Lenders will always show you the maximum amount you can borrow based on your credit. Set your budget based on their quotes and your comfort.
- Pick your car based on your budget.
- Pick and finalize your loan by going through all of the terms and conditions. Understand your fees, interest rates, and terms.
When you finance a car, lenders will often require you to have full coverage insurance to protect their asset. Full coverage can be expensive, but it doesn’t have to break the bank. Try using the number-one-rated car insurance app,
Jerry
, to find the best deals. Jerry compares personalized quotes from more than 50 top providers, including Nationwide, Allstate, and Travelers, and delivers the best deals to your phone in minutes for free. The average Jerry driver saves $879 a year on car insurance!
View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance for Your Car
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
