What Determines Your Auto Loan Rate in Mount Sterling, KY?
Various factors affect your Kentucky auto loan rate, including your credit score, the amount of the loan, 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 Mount Sterling dealer could lead to a higher interest rate. But is a high interest rate so bad? The higher of an interest rate you have, the higher your monthly payment is and the more you spend over the term of your loan. Just one or two percent more could mean you spend hundreds more on interest.
How Can I Get a Lower Car Loan Rate in Mount Sterling, KY?
You can use tools like our Interest Rate Estimator to get an idea of what your rate might look like before having to apply for a car loan in Mount Sterling, KY. If you've plugged in your information and aren't happy with the percentage you see, how can you lower?
The loan term is one thing you can change on your own. Most Mount Sterling car loans are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). 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 bigger monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator shows your possible monthly payment depending on different interest rates and terms to help you decide what might work for your budget.
If your credit is less than stellar, 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 the steps you can take now to raise it quickly. It may take some effort and time to increase your credit score, but it's all worth it for getting those lower auto loan rates in Kentucky.
Waiting to find the right lender can also help you snag a lower rate. While lenders take the same information into consideration, you'll likely receive a different interest rate from each one. Shopping around and comparing offers will help you find the best auto loan rate in Mount Sterling, KY — even without a high income or credit score. You shouldn't go with the first offer you receive because there could be a better one right around the corner. Keep in mind some lenders are open to negotiation, 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 Mount Sterling, KY with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Mount Sterling, KY no matter your credit score or the type of car you're buying. We'll show you up to four loans at once so you can get the right deal. Fill out our secure online application, select the best loan for you, and head to your Mount Sterling dealer to purchase a new ride. Apply today to see the current lowest interest rates!