How Are Car Loan Rates in Berea, KY Calculated?
Many factors contribute to your Kentucky car loan interest rate, including your credit score, the amount of the loan, your income, the car's age, the down payment, and the length of the loan (your loan's term). A low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Berea dealer could result in a higher interest rate. But why is a high interest rate bad? The higher your interest rate is, the higher your monthly bill is and the more you spend over the term of your loan. Even a rate one or two percent higher could mean spending hundreds more on interest.
Is There a Way to Lower My Berea Car Loan Rate?
Using tools like our Interest Rate Estimator can help you get a feel for what your rate could be before you start applying for auto loans in Berea, KY. If you've filled out your information and are unhappy with the percentage you see, how can you lower?
The loan term is one aspect you have a lot of control over. Most car loans in Berea 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. However, longer terms also tend to come with higher interest rates. If you can afford a bigger monthly payment, it's wise to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment depending on different interest rates and terms to help you see what you might be able to afford.
If you have less than ideal credit, increasing your score could help lower your interest rate. Our Guide to Better Credit for Auto Financing can help you understand where your credit score comes from and the steps you can take now to raise it quickly. It may take some effort and time to increase your credit score, but it's all worth it for getting those lower auto loan rates in Kentucky.
Putting effort into finding the right lender can also help you snag a lower rate. While lenders will consider the same information, you'll likely receive a different interest rate from each one. It's important to shop around and compare offers to find the best car loan rate in Berea, KY — even if you don't have 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. And, some lenders are open to negotiation, so you can take an offer from one lender to the next to see if they'll beat the interest rate.
See the Best Auto Loan Rates in Berea, KY with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Berea, KY regardless of what type of vehicle you're buying or your credit score. You can look at up to four loans at once so you can find the best deal. Fill out our secure online application, select the best loan for you, and head to your Berea dealer to purchase a new ride. Don't wait to apply and check today's lowest interest rates!