How Are Lexington, KY Auto Loan Rates Determined?
Many factors contribute to your Kentucky car loan rate, including the loan amount, your credit score, your income, the down payment, the age of the car, 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 Lexington dealer could mean a higher interest rate. But is a high interest rate so bad? The higher your interest rate gets, the higher your monthly payment becomes and the more you spend over the life of your loan. Even a rate one or two percent higher could mean spending hundreds more overall.
How Can I Get a Lower Car Loan Rate in Lexington, KY?
Online tools like our Interest Rate Estimator will give you a feel for what your rate could be before you complete an application for a car loan in Lexington, KY. If you've put in your information and aren't happy with the percentage you see, what can you do to lower it?
The loan term is one element you can change on your own. Most auto loans in Lexington are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Longer terms will tempt many borrowers because they typically have a lower monthly payment. However, a longer term also tends to come with a higher interest rate. If your budget allows for a higher monthly payment, it's better to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment with different interest rates and terms to help you determine what might be affordable.
If your credit is far from great, boosting your score could help lower your interest rate. Use our Guide to Better Credit for Auto Financing to better understand what determines your 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'll be worth it once you see those lower Kentucky auto loan rates.
Waiting to find the right lender can also help you secure a lower rate. While lenders will look at the same information, each one might give you a different interest rate. You need to compare offers and shop around for the best auto loan rate in Lexington, KY — even without a high income or credit score. You don't want to choose the first offer you get because there might be a better one just around the corner. Keep in mind some lenders are open to 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 Lexington, KY with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Lexington, KY regardless of what type of vehicle you're buying or your credit score. We'll present you with up to four loans at once so you can find the best deal. Simply complete our secure online application, pick the loan that works best for you, and head to your Lexington dealer to purchase a new ride. Don't wait to apply and check today's lowest interest rates!