How Are Harrodsburg, 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 age of the car, the down payment, and your loan's term (the length of the loan). A low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Harrodsburg dealer could lead to a higher interest rate. But why is a high interest rate bad? The higher of an interest rate you have, the higher your monthly payment becomes and the more you spend over the life 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 Harrodsburg, KY?
Using tools like our Interest Rate Estimator can help you get a feel for what your rate might look like before you begin applying for auto loans in Harrodsburg, KY. If you've supplied your information and are unhappy with the percentage you see, what steps can you take to lower it?
The loan term is one factor you have total control over. Most auto loans in Harrodsburg have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Longer terms will tempt many borrowers because they typically have a lower monthly payment. But longer terms are also likely to come with higher interest rates. If you can afford a higher monthly payment, it's smart to choose a shorter term. The Auto Payment Calculator shows what your monthly payment might be depending on different interest rates and terms to help you decide what you can afford.
If your credit is far from great, raising your score could decrease your interest rate. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and which steps you can take to bring it up fast. Your credit score may take some more time and work, but it's worth it for those lower Kentucky auto loan rates.
Waiting to find the right lender can also help you achieve a lower rate. While lenders take the same information into consideration, you won't receive the same interest rate from each one. It's important to shop around and compare offers to find the best car loan rate in Harrodsburg, KY — even without the best credit or income. You shouldn't automatically choose the first offer you get because there might be a better one just around the corner. Plus, 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.
Use myAutoloan to Check the Best Auto Loan Rates in Harrodsburg, KY
myAutoloan wants to help you find the lowest auto loan rates in Harrodsburg, 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 get the right deal. Fill out our simple and secure online application, select the best loan for you, and head down to a dealer in Harrodsburg to purchase a new ride. Don't wait to apply and check today's lowest interest rates!