How Are Car Loan Rates in Abington, PA Calculated?
A handful of factors influence your Pennsylvania auto loan rate, including your credit score, the amount of the loan, 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 Abington dealer could lead to a higher interest rate. But why is a high interest rate bad? The higher your interest rate gets, the higher your monthly payment is and the more you spend over your loan’s term. Just one or two percent more could mean spending hundreds more on interest.
Is There a Way to Lower My Abington Car Loan Rate?
You can use tools like our Interest Rate Estimator to get a feel for what your rate might look like before you complete an application for a car loan in Abington, PA. 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 factor you can control. Most Abington auto loans have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Many borrowers take longer terms because they typically have a lower monthly payment. But longer terms tend to also come with higher interest rates. If your budget allows for a higher monthly payment, it's wise to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment with different interest rates and terms to help you figure out what you can afford.
If your credit is less than stellar, boosting 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 effort and time to increase your credit score, but it's worth it for those lower Pennsylvania auto loan rates.
Taking some time to find the right lender can also help you get a lower rate. While lenders will look at the same information, 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 Abington, PA — even if you don't have the highest income or best credit. You don't want to go with the first offer you receive because a better one might be waiting just 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.
Discover the Best Auto Loan Rates in Abington, PA with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Abington, PA regardless of your credit score and the type of car you're buying. You can see up to four loans at once so you can find the best deal. Complete our secure online application, pick the loan that works best for you, and head to your Abington dealer to purchase a new ride. Apply now to check today's lowest interest rates!