What should I look for in a car loan?

I want to finance a car, but I don't know where to start. What do I need to look for in a car loan?

Answer
Knowing what to look for in a car loan is a smart way to understand the terms of the loan, how much you’ll pay, and more.
When you shop around for a car loan, make sure to look for these characteristics and terms:
  • Overall interest rate or APR
  • What your monthly payment is
  • Any prepayment penalties
  • Fees and taxes
By understanding these terms and other aspects of your car loan, you’re in the position to find the best lending agreement possible for your loan.
Furthermore, you should take a look at your credit report and see what your credit score is. Depending on your credit score, you should look for these car loan rates, which are the averages for each credit score range as of September 2021:
  • 300 - 500: 14.59%
  • 501 - 600: 11.03%
  • 601 - 660: 6.61%
  • 661 - 780: 3.48%
  • 781+: 2.34%
Keep in mind that these rates are independent of the length of the car loan, so your rate might change depending on how long you get the car loan.
To save extra money and get the proper coverage for your car loan, sign up with Jerry. As a top online insurance broker, Jerry allows you to compare quotes from up to 50 insurers in just minutes.
Eric Schad
Answered on Nov 01, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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