How Are Car Loan Rates in Murray, KY Calculated?
Various factors impact your Kentucky auto loan interest rate, including your credit score, the amount of the loan, your income, the car's age, the down payment, and the length of the loan (your loan's term). A high debt-to-income ratio, low credit score, or purchasing an older car from a dealer in Murray could mean a higher interest rate. But why is a high interest rate bad? The higher your interest rate, the higher your monthly payment is 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 Do I Lower My Auto Loan Rate in Murray, KY?
Using tools like our Interest Rate Estimator can help you get an idea of what your rate might be before you complete an application for a car loan in Murray, KY. If you've plugged in your information and aren't liking 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 Murray auto loans are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Many borrowers take longer terms because they usually have a lower monthly payment. But longer terms are also likely to come with higher interest rates. If you can handle a higher monthly payment, it's wise to choose a shorter term. The Auto Payment Calculator estimates what your monthly payment could be with different interest rates and terms to help you figure out what might work for your budget.
If your credit is less than stellar, improving your score could lower your interest rate. Our Guide to Better Credit for Auto Financing will help you understand what goes into a credit score and which steps you can take to bring it up fast. It may take some time and work to better your credit score, but it's worth it for those lower Kentucky auto loan rates.
Putting effort into finding the right lender can also help you snag a lower rate. While lenders will use the same information, each one might give you a different interest rate. You need to shop around and compare offers to find the best auto loan rate in Murray, KY — even without the best credit or income. You don't want to choose the first offer you get because a better one could be right around the corner. Keep in mind some lenders allow for 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 Murray, KY
myAutoloan is here to help you get the lowest auto loan rates in Murray, KY no matter what type of car you're buying or your credit score. You can look at up to four loans at once so you can get the right deal. Fill out our secure online application, pick the loan that works best for you, and head to your Murray dealer to purchase a new ride. Apply today to see the current lowest interest rates!