How Are Covington, KY Car Loan Rates Determined?
Several factors impact your Kentucky car loan 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 high debt-to-income ratio, low credit score, or purchasing an older car from a dealer in Covington could mean a higher interest rate. But why worry about a high interest rate? The higher your interest rate is, the higher your monthly payment is and the more you spend over the term of your loan. A difference of one or two percent might not seem like much, but it could mean spending hundreds more on interest.
Is There a Way to Lower My Covington Car Loan Rate?
Using tools like our Interest Rate Estimator can help you get a feel for what your rate might look like before having to apply for a car loan in Covington, KY. If you've put in your information and don't like the percentage you see, what can be done to lower it?
The loan term is one aspect you can control. Most auto loans in Covington have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Longer terms attract many borrowers because they usually mean a lower monthly payment. However, a longer term also tends to come with a higher interest rate. If you can handle a higher monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator shows your possible monthly payment with different terms and interest rates to help you see what might work for your budget.
If your credit is less than stellar, increasing your score could help 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 to get those lower Kentucky car loan rates.
Putting effort into finding the right lender can also help you secure a lower rate. While lenders will look at the same information, you won't receive the same interest rate from each one. You need to compare offers and shop around for the best auto loan rate in Covington, KY — even if you don't have the highest income or best credit. You don't want to go with the first offer you receive because a better one could be right around the corner. Keep in mind 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.
Discover the Best Auto Loan Rates in Covington, KY with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Covington, KY regardless of your credit score and the type of car you're buying. We'll present you with up to four loans at once so you can find the best deal. Fill out our simple and secure online application, pick the loan that works best for you, and visit your Covington dealer to purchase a new car. Apply now to see today's lowest interest rates!