How Are Lancaster, PA Car Loan Rates Determined?
Several factors contribute to your Pennsylvania car 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 high debt-to-income ratio, low credit score, or purchasing an older car from a dealer in Lancaster could lead to a higher interest rate. But is a high interest rate so bad? The higher your interest rate is, the higher your monthly payment is and the more you spend in total. Just one or two percent more could mean you spend hundreds more on interest.
Is There a Way to Lower My Lancaster Car Loan Rate?
Using tools like our Interest Rate Estimator can help you get an idea of what your rate might look like before you begin applying for auto loans in Lancaster, PA. If you've filled out your information and are unhappy with the percentage you see, what can you do to lower it?
The loan term is one element you have a lot of control over. Most Lancaster car loans have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Longer terms attract many borrowers because the monthly payment is usually lower. But longer terms are also likely 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 with different interest rates and terms to help you see what might be affordable.
If you have less than stellar credit, raising your score could decrease your interest rate. Our Guide to Better Credit for Auto Financing will help you understand what goes into a credit score and which steps you can take to bring it up fast. It may take some effort and time to increase your credit score, but it'll be worth it once you see those lower Pennsylvania auto loan rates.
Waiting to find the right lender can also help you snag a lower rate. While lenders will look at the same information, you'll likely receive a different interest rate from each one. It's important to shop around and compare offers to find the best car loan rate in Lancaster, PA — even if you don't have the best credit or income. You don't want to choose the first offer you get because a better one could be right around the corner. Plus, some lenders are open to 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 Lancaster, PA with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Lancaster, 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. Fill out our secure online application, choose the best loan for you, and visit your Lancaster dealer to purchase a new car. Apply today to see the current lowest interest rates!