What Determines Your Auto Loan Rate in Horsham, PA?
A handful of factors affect your Pennsylvania auto loan 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 Horsham could mean 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 over your loan’s term. A difference of one or two percent might not seem like much, but it could mean spending hundreds more on interest.
Is There a Way to Lower My Horsham Car Loan Rate?
You can use tools like our Interest Rate Estimator to get a feel for what your rate could be before you begin applying for auto loans in Horsham, PA. If you've put in your information and are unhappy with the percentage you see, what can you do to lower it?
The loan term is one thing you have a lot of control over. Most auto loans in Horsham have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. 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, it's wise to choose a shorter term. The Auto Payment Calculator shows what your monthly payment might be 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, raising your score could lower your interest rate. 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. It may take some time and work to better your credit score, but it'll be worth it once you see those lower Pennsylvania auto loan rates.
Putting effort into finding the right lender can also help you secure a lower rate. While lenders will use the same information, you won't receive the same interest rate from each one. Shopping around and comparing offers will help you find the best auto loan rate in Horsham, PA — even if you don't have the best credit or income. You don't want to go with the first offer you receive because there might be a better one just around the corner. Keep in mind some lenders are open to negotiation, so you can take your offer from one lender to another to see if they're willing to give an even lower rate.
See the Best Auto Loan Rates in Horsham, PA with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Horsham, PA 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 find the right deal. Simply complete our secure online application, choose the loan that looks best to you, and visit your Horsham dealer to purchase a new car. Apply now to see today's lowest interest rates!