How Are Newtown Square, PA Car Loan Rates Determined?
A handful of factors affect your Pennsylvania car loan interest 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 Newtown Square might lead to a higher interest rate. But is a high interest rate so bad? The higher your interest rate is, the higher your monthly bill is and the more you spend over your loan’s term. Just one or two percent more could mean spending hundreds more overall.
How Do I Get a Lower Car Loan Interest in Newtown Square, PA?
You can use tools like our Interest Rate Estimator to get an idea of what your rate might look like before you complete an application for a car loan in Newtown Square, PA. If you've plugged in your information and are unhappy with the percentage you see, what can be done to lower it?
The loan term is one thing you can control. Most Newtown Square auto loans 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 the monthly payment is usually lower. But longer terms tend to also come with higher interest rates. If you can handle a higher monthly payment, it's smart to choose a shorter term. The Auto Payment Calculator shows what your monthly payments might look like with different terms and interest rates to help you decide what might work for your budget.
If your credit is less than stellar, increasing 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 today to bring it up quickly. Your credit score will take some effort and time to build, but it's worth it to get those lower Pennsylvania car loan rates.
Waiting to find 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 Newtown Square, 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 there might be a better one just around the corner. Don't forget 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 Newtown Square, PA with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Newtown Square, 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 best deal. Fill out our simple and secure online application, pick the loan that works best for you, and head to your Newtown Square dealer to purchase a new ride. Don't wait to apply and check today's lowest interest rates!