What Determines Your Auto Loan Rate in Princeton, KY?
A handful of factors contribute to your Kentucky auto 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 high debt-to-income ratio, low credit score, or purchasing an older car from a dealer in Princeton could lead to a higher interest rate. But why worry about a high interest rate? The higher your interest rate gets, the more you pay each month and the more you spend over the life of your loan. Just one or two percent more could mean you spend hundreds more on interest.
Is There a Way to Lower My Princeton Car Loan Rate?
You can use tools like our Interest Rate Estimator to get a feel for what your rate could be before you complete an application for a car loan in Princeton, KY. If you've supplied your information and are unhappy with the percentage you see, what can you do to lower it?
The loan term is one thing you can change on your own. Most Princeton auto 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 the monthly payment is usually lower. However, a longer term also tends to come with a higher interest rate. If you can afford 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 decide what you might be able to afford.
If you have less than stellar credit, increasing your score could help lower your interest rate. Our Guide to Better Credit for Auto Financing can help you understand where your credit score comes from and the steps you can take now to raise it quickly. It may take some time and work to better your credit score, but it's all worth it for getting those lower auto loan rates in Kentucky.
Taking the time to hunt down the right lender can also help you snag a lower rate. While lenders take the same information into consideration, each one might give you a different interest rate. Shopping around and comparing offers will help you find the best auto loan rate in Princeton, 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. Don't forget some lenders leave room for negotiation, so you can take an offer from one lender to the next to see if they'll beat the interest rate.
See the Best Auto Loan Rates in Princeton, KY with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Princeton, KY regardless of what type of vehicle you're buying or your credit score. You can see up to four loans at once so you can get the right deal. Complete our secure online application, choose the loan that looks best to you, and visit your Princeton dealer to purchase a new car. Apply now to see today's lowest interest rates!