How Are Louisville, KY Auto Loan Rates Determined?
A handful of factors contribute to your Kentucky car loan interest rate, including your income, your credits core, the loan amount, the age of the car, the down payment, and your loan's term (the length of the loan). A high debt-to-income ratio, low credit score, or purchasing an older car from a dealer in Louisville could 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 more you pay each month and the more you spend over your loan’s term. A difference of just one or two percent could mean spending hundreds more on interest.
Can I Lower My Car Loan Rate in Louisville, KY?
You can use tools like our Interest Rate Estimator to get an idea of what your rate might be before you start applying for auto loans in Louisville, KY. If you've put in your information and don't like the percentage you see, what can you do to lower it?
The loan term is one aspect you have a lot of control over. Most auto loans in Louisville have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Longer terms attract many borrowers 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 shows your possible monthly payment with different interest rates and terms to help you figure out what you might be able to afford.
If your credit is far from great, increasing 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 how you can quickly bring it up. Your credit score may take some more time and work, but it's worth it for those lower Kentucky auto loan rates.
Taking some time 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. Shopping around and comparing offers will help you find the best auto loan rate in Louisville, KY — even without the best credit or income. You don't want to choose the first offer you get because there could be a better one right around the corner. Plus, some lenders are open to negotiation, so you can take an offer from one lender to the other to see if they can beat the interest rate.
Use myAutoloan to Check the Best Auto Loan Rates in Louisville, KY
myAutoloan is dedicated to helping you find the lowest car loan rates in Louisville, KY regardless of your credit score and the type of car you're buying. We'll present you with up to four loans at once so you can get the right deal. Complete our secure online application, pick the loan that works best for you, and head down to a dealer in Louisville to purchase a new ride. Apply now to check today's lowest interest rates!