What Determines Your Auto Loan Rate in Alexandria, KY?
A handful of factors affect your Kentucky car loan rate, including your income, your credits core, the loan amount, the down payment, the age of the car, and your loan's term (the length of the loan). A high debt-to-income ratio, low credit score, or purchasing an older car from a dealer in Alexandria could lead to a higher interest rate. But what's so bad about a high interest rate? The higher your interest rate is, the more you pay each month and the more you spend in total. A difference of one or two percent might not seem like much, but it could mean spending hundreds more overall.
How Do I Lower My Auto Loan Rate in Alexandria, KY?
You can use tools like our Interest Rate Estimator to get a feel for what your rate might look like before you start applying for auto loans in Alexandria, KY. If you've put in your information and aren't liking the percentage you see, what steps can you take to lower it?
The loan term is one aspect you can control. Most auto loans in Alexandria have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Many borrowers take longer terms because they typically have a lower monthly payment. But longer terms are also likely to come with higher interest rates. If you can afford a bigger monthly payment, it's smart to choose a shorter term. The Auto Payment Calculator estimates what your monthly payment could be depending on different interest rates and terms to help you figure out what might be affordable.
If you have less than ideal credit, boosting your score could lower your interest rate. Use our Guide to Better Credit for Auto Financing to better understand what determines your credit score and which steps you can take today to bring it up quickly. Your credit score may take some more time and work, but it's worth it for those lower Kentucky auto loan rates.
Taking some time to find the right lender can also help you get a lower rate. While lenders will use the same information, you won't see the same interest rate from each one. It's important to shop around and compare offers to find the best car loan rate in Alexandria, KY — even without the best credit or income. You shouldn't automatically choose the first offer you get because a better one might be waiting just around the corner. Plus, some lenders will negotiate, so you can take an offer from one lender to the other to see if they can beat the interest rate.
Use myAutoloan to Check the Best Auto Loan Rates in Alexandria, KY
myAutoloan is dedicated to helping you find the lowest car loan rates in Alexandria, KY no matter what type of car you're buying or your credit score. We'll present you with up to four loans at once so you can find the right deal. Simply complete our secure online application, choose the loan that looks best to you, and head to your Alexandria dealer to purchase a new ride. Apply today to see the current lowest interest rates!