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
Is a car loan worth it?
In general, are car loans really worth it? I need a new car because mine is really old, but I can’t find a car loan with a low enough interest rate to be worth it. It seems like it might be better to find a cheap car that needs some work and buy it outright.
Liz Jenson · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Car loans aren’t always the best option for consumers—especially people who are only offered
high interest rates
. That said, car loans can be important financial tools for others.If you feel like your loan is too expensive to justify, consider taking the following steps to lower your APR and secure better terms:
- Find a cosignerwith an excellent credit score
- Make a large down payment
- Compare offers from different lenders
If you try the steps above and still think you’d rather buy an old car, be sure to check for problems before you buy it. Older cars often come with unexpected mechanical issues that can cost more to fix than your loan would have.
No matter which option you choose, you may need a new insurance policy when you get a new car. Luckily, the
Jerry
app can help you find the best rate on the coverage you need in minutes. Just download the app, answer a few questions, and Jerry will send you personalized quotes from over 50 top providers like Progressive and Nationwide.MORE: 7 things to look for when buying a used car
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
