How Are Edgewood, KY Auto Loan Rates Determined?
A handful of factors influence your Kentucky auto 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 high debt-to-income ratio, poor credit score, or choosing an older vehicle at your Edgewood dealership might lead to a higher interest rate. But is a high interest rate so bad? The higher your interest rate, the more you pay each month and the more you spend over the term of your loan. A difference of just one or two percent could mean spending hundreds more on interest.
How Do I Lower My Auto Loan Rate in Edgewood, KY?
Online tools like our Interest Rate Estimator will give you an idea of what your rate might be before you begin applying for auto loans in Edgewood, KY. If you've filled out your information and don't like the percentage you see, how can you lower?
The loan term is one thing you have total control over. Most car loans in Edgewood have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Many borrowers are drawn in by 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 handle a higher monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator shows what your monthly payments might look like with different terms and interest rates to help you determine what you might be able to afford.
If your credit is far from great, improving your score could bring your interest rate down. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and which steps you can take today to bring it up quickly. It may take some effort and time to increase your credit score, but it'll be worth it once you see those lower Kentucky auto loan rates.
Waiting to find the right lender can also help you achieve a lower rate. While lenders will look at the same information, each one might give you a different interest rate. It's important to shop around and compare offers to find the best car loan rate in Edgewood, 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. Don't forget some lenders are open to negotiation, so you can take an offer from one lender to the other to see if they can beat the interest rate.
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myAutoloan is here to help you get the lowest auto loan rates in Edgewood, KY no matter your credit score or the type of car you're buying. We'll show you up to four loans at once so you can find the right deal. Fill out our simple and secure online application, select the best loan for you, and purchase a new ride from your {City}} dealer. Apply now to check today's lowest interest rates!