What Determines Your Auto Loan Rate in Henderson, KY?
A handful of factors impact your Kentucky car loan interest 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 low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Henderson dealer could result in a higher interest rate. But why is a high interest rate bad? The higher your interest rate gets, the higher your monthly bill is and the more you spend over your loan’s term. Even a rate one or two percent higher could mean spending hundreds more on interest.
Can I Lower My Car Loan Rate in Henderson, 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 Henderson, KY. If you've plugged in your information and aren't liking the percentage you see, how can you lower?
The loan term is one factor you have total control over. Most Henderson 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 they usually mean a lower monthly payment. However, a longer term also tends to come with a higher interest rate. If you can afford a higher monthly payment, it's better to choose a shorter term. The Auto Payment Calculator shows what your monthly payment might be based on different interest rates and terms to help you decide what you might be able to afford.
If your credit is less than stellar, increasing your score could help lower 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 today to bring it up quickly. Your credit score will take some effort and time to build, but it'll be worth it once you see those lower Kentucky auto loan rates.
Taking some time to find the right lender can also help you secure a lower rate. While lenders will use the same information, 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 Henderson, KY — even without a high income or credit score. You shouldn't go with the first offer you receive because a better one could be right around the corner. Don't forget some lenders will negotiate, so you can take an offer from one lender to the next to see if they'll beat the interest rate.
Find the Best Auto Loan Rates in Henderson, KY with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Henderson, KY no matter your credit score or the type of car you're buying. You can look at up to four loans at once so you can find the right deal. Fill out our secure online application, choose the best loan for you, and head down to a dealer in Henderson to purchase a new ride. Apply now to check today's lowest interest rates!