What Determines Your Auto Loan Rate in Franklin, PA?
A handful of factors affect your Pennsylvania car loan interest 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 poor credit score, low income, or buying an older vehicle from a dealer in Franklin 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 bill is and the more you spend in total. A difference of just one or two percent could mean spending hundreds more on interest.
Is There a Way to Lower My Franklin Car Loan Rate?
Using tools like our Interest Rate Estimator can help you get an idea of what your rate might look like before having to apply for a car loan in Franklin, PA. If you've supplied your information and are unhappy with the percentage you see, what can be done to lower it?
The loan term is one factor you have total control over. Most Franklin auto loans have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Many borrowers take longer terms because they usually mean a lower monthly payment. However, longer terms also tend to come with higher interest rates. If your budget allows for a higher monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator shows what your monthly payment might be depending on different interest rates and terms to help you figure out what you can afford.
If your credit is far from great, increasing your score could help lower your interest rate. Our Guide to Better Credit for Auto Financing will help you understand what goes into a credit score and the steps you can take now to raise it quickly. Your credit score may take some more time and work, but it's worth it to get those lower Pennsylvania car loan rates.
Putting effort into finding the right lender can also help you get a lower rate. While lenders take the same information into consideration, you won't receive the same interest rate from each one. You need to shop around and compare offers to find the best auto loan rate in Franklin, PA — even if you don't have the highest income or best credit. You don't want to choose the first offer you get because a better one might be waiting just around the corner. Plus, some lenders allow for negotiation, so you can take an offer from one lender to the next to see if they'll beat the interest rate.
Use myAutoloan to Check the Best Auto Loan Rates in Franklin, PA
myAutoloan is here to help you get the lowest auto loan rates in Franklin, PA regardless of your credit score and the type of car you're buying. You can look at 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 down to a dealer in Franklin to purchase a new ride. Apply now to see today's lowest interest rates!