To find a great car loan in New Mexico, you’ll want a credit score of 660 or better, a loan that has a low interest rate, and a loan term of 60 months or less.

Getting a car loan in New Mexico can be difficult, and finding one that has favorable terms can seem impossible. Fortunately, the car insurance broker app Jerry has created this guide to help you through the process.

By following the guidance in this article you’ll know how to get a loan, how to compare lenders, and how your credit score will help or hinder your efforts to get an auto loan in New Mexico.

How to get a car loan in New Mexico

While it’s possible to purchase your new car with a lump-sum cash payment, most people in New Mexico choose to finance their purchase with an auto loan. With a loan from a bank, credit union, or dealership you can pay off your vehicle with monthly installments over several years.

Here are some things to expect before taking out a car loan in New Mexico:

You’ll need a downpayment of about 10% of the car’s total value.
You’ll determine the repayment time frame of the loan by setting a loan term and interest rate with the lender.
You’ll make monthly payments on the loan for the duration of the loan term.
You’ll make monthly payments on the interest based on the annual percentage rate (APR).
*The type of vehicle you’re buying**, your credit score, and loan term will determine a lot about your loan. By making use of the table below, you’ll be able to see what your APR and monthly payments will be like with a New Mexico car loan.

Credit Rating

Car Make	Average Annual Interest Rate	Average Monthly Payment
ACURA	8.46	$361
ALFA ROMEO	8.53	$362
ASTON MARTIN	8.53	$362
AUDI	8.66	$363
BENTLEY	8.53	$362
BMW	9.17	$367
BUICK	8.56	$362
CADILLAC	8.86	$365
CHEVROLET	8.56	$362
CHRYSLER	8.89	$365
DODGE	8.69	$363
FERRARI	8.53	$362
FIAT	8.6	$362
FORD	8.56	$362
GENESIS	8.53	$362
GMC	8.49	$362
HONDA	8.32	$360
HYUNDAI	8.56	$362
INFINITI	8.69	$363
JEEP	8.32	$360
Jaguar	8.53	$362
KIA	8.79	$364
LAMBORGHINI	8.53	$362
LEXUS	8.49	$362
LINCOLN	8.66	$363
LOTUS	8.53	$362
Land Rover	8.53	$362
MERCEDES-BENZ	8.53	$362
MINI	8.53	$362
MITSUBISHI	8.69	$363
Maserati	8.53	$362
Mazda	8.53	$362
NISSAN	8.63	$363
POLESTAR	8.53	$362
PORSCHE	8.68	$363
RAM	8.56	$362
ROLLS-ROYCE	8.53	$362
Subaru	8.53	$362
TESLA	9.02	$366
TOYOTA	8.32	$360
VOLKSWAGEN	8.56	$362
VOLVO	8.36	$361

Are you ready to start the search for an auto loan in New Mexico? If so, follow these steps to make sure you get a loan that best fits your needs.

Check your credit

You’ll want to start by checking your credit score. A score of 660 or better will put you in a position for getting a good interest rate. If you’re fortunate enough to have a score of 700 or more, you can qualify for a rate as low as 3% or less! However, if your credit score is less than 700, don’t worry. Nationally, the average interest rate for auto loans is in the neighborhood of 5%.

To figure out the interest rate and monthly payments you can expect with your credit score, check out the table below.

Credit Rating

Loan Terms	Average Annual Interest Rate	Average Monthly Payment
24	11.63	$699
36	8.8	$471
48	8.25	$364
60	8.15	$301
72	8.51	$263

Compare lenders

Though it may be tempting, don’t accept the first loan offer you receive. If you’re purchasing your vehicle through a dealership, they’re likely to offer to handle the loan for you. Despite being convenient, allowing them to do so may lock you into a loan that’s not in your best interest.

You’ll want to compare offers from at least three different lenders before choosing one. The best lenders will offer low-interest rates, but don’t neglect the value of good approval odds or quality customer service.

Choose your loan term

Your loan term dictates the period in which you’ll be paying off your loan. While the average loan term in New Mexico is between 60 and 72 months, the term for your loan is open for negotiation.

Be wary of longer loan terms. Though the monthly payments will be lower with a longer-term, that means paying more interest and a more expensive loan overall. In most cases, you’ll want a term of 60 months or less. However, consult your budget to find the loan term that best suits your needs.

Use the table below to see how your APR and monthly payments will be impacted by your loan term in New Mexico.

Credit Rating	Average Annual Interest Rate	Average Monthly Payment
Fair	16.92	$415
Good	8.42	$361
Very Good	5.11	$341
Excellent	3.89	$333

MORE: What is a prepayment penalty on your car loan?

Get preapproved

If you can, try to get preapproved for a car loan. While it may seem like putting the cart before the horse, preapproval places you at an advantage when negotiating the price of your new vehicle with a dealership or private seller. In addition, you can shop for your vehicle more comfortably since you already know the loan amount you have access to and the additional monthly expense you’ll be taking on.

Can you get a car loan in New Mexico for a used car?

Yes, you can. However, you’ll want to keep a few things in mind before taking out an auto loan in New Mexico for a used car:

Used car loans often have interest rates of nearly 8%.
There may be age limits for the vehicles some lenders are willing to finance.
You may need to get your loan from a credit union because banks normally have minimum amount requirements for auto loans.

The table below will give you a better idea of how the age of your vehicle may impact your auto loan in New Mexico.

Car Make

Car Year	Average Annual Interest Rate	Average Monthly Payment
2021	7.73	$305
2020	8.14	$309
2019	8.28	$309
2018	8.11	$307
2017	8.31	$309
2016	8.47	$310
2015	8.67	$312
2014	8.64	$380
2013	8.71	$381
2012	9.7	$512
2011	9.7	$512
2010	9.7	$512

MORE: How to trade in a car with a loan

New Mexico car loan calculator

Now that you’ve got a grasp on auto loans—how they work, how to pick one, and how your vehicle affects it—you’ll want to bring it all together. You can estimate the cost and interest rates of a car loan in New Mexico with Jerry’s car loan calculator. Just be sure to know your credit score, loan term, loan amount, and vehicle make before you begin.

It’s important to remember that the values given here are only averages. Just like fees and penalties your lender may try to add to your loan agreement, the interest rate and loan term are open for negotiation. Use the information provided by this tool to help your case when you enter into negotiations concerning your loan!

Car Make

Credit Rating

Loan Terms

Loan Amount

Average Annual Interest Rate	Average Monthly Payment
8.59	$362

MORE: New Mexico Electric Vehicle Incentives

How to find affordable car insurance in New Mexico

Just because you’ve got the financing you need doesn’t mean your work is done! You’ll need to have the minimum insurance required by New Mexico car insurance laws before you can take your new ride for a spin.

To streamline the insurance process, download the Jerry app. Jerry is a licensed insurance broker and super app that provides you with quotes from more than 50 insurance companies. In less than two minutes you’ll be able to easily find coverage that will give you the peace of mind you deserve at the price you want.

To make things even easier for you, Jerry handles the paperwork after you’ve chosen a new policy and will take care of canceling your old policy. It’s never been easier to find affordable car insurance. Don’t wait—download Jerry and start saving today!

“Jerry saved me so much time and money! I went from $230 to $150, still with full coverage! The whole process was amazingly simple!” —Ronda S.

FAQs

What credit score is needed to buy a car in New Mexico?

As a rule of thumb, you’ll need a credit score of 660 or more to qualify for a car loan in New Mexico. If you have below-average credit, don’t worry. You should be able to find a reputable lender, with enough searching.

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

Yes and no. Banks do offer auto loans for used vehicles, but many require a minimum loan amount. If the vehicle you’re looking to buy has a price too low for financing from a bank, try taking out a loan through a credit union.