How Are Frankfort, KY Car Loan Rates Determined?
Many factors contribute to your Kentucky car loan interest rate, including the loan amount, your credit score, 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 Frankfort dealership might lead to a higher interest rate. But what's so bad about a high interest rate? The higher of an interest rate you have, the higher your monthly payment is and the more you spend over your loan’s term. Just one or two percent more could mean spending hundreds more on interest.
Can I Lower My Car Loan Rate in Frankfort, KY?
With tools like our Interest Rate Estimator, you can get an idea of what your rate might be before you start applying for auto loans in Frankfort, KY. If you've plugged in your information and are unhappy with the percentage you see, what can be done to lower it?
The loan term is one aspect you have total control over. Most car loans in Frankfort 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 usually have a lower monthly payment. But longer terms tend to also come with higher interest rates. If your budget allows for a higher monthly payment, it's better to choose a shorter term. The Auto Payment Calculator shows what your monthly payments might look like with different interest rates and terms to help you see what might work for your budget.
If you have less than ideal credit, improving your score could decrease 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. Your credit score will take some effort and time to build, but it's worth it for those lower Kentucky auto loan rates.
Putting effort into finding the right lender can also help you secure a lower rate. While lenders take the same information into consideration, each one might give you a different interest rate. Shopping around and comparing offers will help you find the best auto loan rate in Frankfort, KY — even without the best credit or income. You shouldn't go with the first offer you receive because there might be a better one 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.
Discover the Best Auto Loan Rates in Frankfort, KY with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Frankfort, KY regardless of what type of vehicle you're buying or your credit score. You can see up to four loans at once so you can find the perfect loan. Complete our secure online application, pick the loan that works best for you, and head to your Frankfort dealer to purchase a new ride. Apply today to see the current lowest interest rates!