How Are Franklin, KY Car Loan Rates Determined?
Various factors affect your Kentucky car loan rate, including your credit score, the amount of the loan, your income, the down payment, your loan's term (the length of the loan), and the car's age. A high debt-to-income ratio, poor credit score, or choosing an older vehicle at your Franklin dealership could result in a higher interest rate. But why is a high interest rate bad? The higher of an interest rate you have, the more you pay each month 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 Franklin, KY?
Online tools like our Interest Rate Estimator will give you an idea of what your rate might look like before you start applying for auto loans in Franklin, KY. If you've plugged in your information and don't like the percentage you see, how can you lower?
The loan term is one factor you can change on your own. Most Franklin car loans 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 the monthly payment is usually lower. 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 estimates what your monthly payment could be depending on different interest rates and terms to help you decide what you can afford.
If your credit is less than stellar, improving your score could help lower your interest rate. Our Guide to Better Credit for Auto Financing will help you understand what goes into a credit score and which steps you can take to bring it up fast. It may take some effort and time to increase your credit score, but it's worth it to get those lower Kentucky car loan rates.
Taking the time to hunt down the right lender can also help you snag a lower rate. While lenders will use 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 Franklin, KY — even without a high income or credit score. You shouldn't automatically choose the first offer you get because there might be a better one just around the corner. Don't forget some lenders allow 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 Franklin, KY with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Franklin, KY no matter what type of car you're buying or your credit score. We'll show you 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 down to a dealer in Franklin to purchase a new ride. Apply now to see today's lowest interest rates!