What Determines Your Auto Loan Rate in Columbia, KY?
Various factors contribute to your Kentucky car loan interest rate, Including your credit score, your income, the amount of the loan, the age of the car, the down payment, and your loan's term (the length of the loan). A poor credit score, low income, or buying an older vehicle from a dealer in Columbia could mean a higher interest rate. But is a high interest rate so bad? The higher your interest rate gets, the higher your monthly payment becomes and the more you spend in total. Just one or two percent more could mean spending hundreds more on interest.
Is There a Way to Lower My Columbia 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 Columbia, KY. If you've supplied your information and don't like the percentage you see, what steps can you take to lower it?
The loan term is one factor you have a lot of control over. Most Columbia auto loans have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Many borrowers are drawn in by longer terms because they usually mean 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 estimates what your monthly payment could be based on different interest rates and terms to help you decide what you might be able to afford.
If you have less than ideal credit, improving your score could bring your interest rate down. Our Guide to Better Credit for Auto Financing will help you understand what goes into a credit score and the steps you can take now to raise it quickly. Your credit score may take some more time and work, but it's worth it for those lower Kentucky auto loan rates.
Putting effort into finding the right lender can also help you snag a lower rate. While lenders will look at the same information, you won't see the same interest rate from each one. You need to shop around and compare offers to find the best auto loan rate in Columbia, KY — even if you don't have the best credit or income. You don't want to choose the first offer you get because a better one might be waiting just around the corner. Don't forget some lenders leave room for negotiation, so you can take your offer from one lender to another to see if they're willing to give an even lower rate.
See the Best Auto Loan Rates in Columbia, KY with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Columbia, KY regardless of your credit score and the type of car you're buying. You can look at up to four loans at once so you can find the best deal. Fill out our secure online application, pick the loan that works best for you, and head to your Columbia dealer to purchase a new ride. Don't wait to apply and check today's lowest interest rates!