What Determines Your Auto Loan Rate in Hanover, PA?
A handful of factors affect your Pennsylvania auto loan rate, including the loan amount, your credit score, your income, the down payment, your loan's term (the length of the loan), and the car's age. A low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Hanover dealer might lead to a higher interest rate. But what's so bad about a high interest rate? The higher of an interest rate you have, the more you pay each month and the more you spend over the life of your loan. Even a rate one or two percent higher could mean you spend hundreds more on interest.
Is There a Way to Lower My Hanover Car Loan Rate?
With tools like our Interest Rate Estimator, you can get an idea of what your rate might be before having to apply for a car loan in Hanover, PA. If you've supplied your information and aren't happy with the percentage you see, what can you do to lower it?
The loan term is one element you can control. Most auto loans in Hanover are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Longer terms will tempt many borrowers because they typically have a lower monthly payment. But longer terms tend to also 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 shows your possible monthly payment depending on different interest rates and terms to help you see what you might be able to afford.
If your credit is less than stellar, increasing your score could bring your interest rate down. 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. Your credit score will take some effort and time to build, but it's all worth it for getting those lower auto loan rates in Pennsylvania.
Taking some time to find the right lender can also help you achieve 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 Hanover, PA — even if you don't have the best credit or income. You shouldn't automatically choose the first offer you get because there could be a better one right around the corner. Keep in mind some lenders allow for negotiation, so you can take an offer from one lender to another to see if they're willing to beat the interest rate.
Discover the Best Auto Loan Rates in Hanover, PA with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Hanover, PA 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 find the right deal. Complete our secure online application, choose the best loan for you, and head down to a dealer in Hanover to purchase a new ride. Apply now to check today's lowest interest rates!