How Are Pen Argyl, PA Car Loan Rates Determined?
Several factors contribute to your Pennsylvania car loan rate, including the loan amount, your credit score, your income, the car's age, the down payment, and the length of the loan (your loan's term). A low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Pen Argyl dealer might lead to a higher interest rate. But what's so bad about a high interest rate? The higher your interest rate is, the higher your monthly payment is and the more you spend over the life of your loan. Even a rate one or two percent higher could mean spending hundreds more overall.
How Can I Get a Lower Car Loan Rate in Pen Argyl, PA?
Online tools like our Interest Rate Estimator will give you a feel for what your rate might look like before you start applying for auto loans in Pen Argyl, 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 element you have a lot of control over. Most Pen Argyl car 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 typically have a lower monthly payment. But longer terms tend to also come with higher interest rates. If you can afford a bigger monthly payment, it's wise 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 be affordable.
If you have less than ideal credit, improving your score could lower your interest rate. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and which steps you can take to bring it up fast. It may take some time and work to better your credit score, but it's worth it to get those lower Pennsylvania car loan rates.
Taking some time to find the right lender can also help you achieve a lower rate. While lenders will look at the same information, you won't see the same interest rate from each one. You need to shop around and compare offers to find the best auto loan rate in Pen Argyl, PA — even without a high income or credit score. You don't want to go with the first offer you receive because there might be a better one just around the corner. Plus, some lenders are open to negotiation, so you can take an offer from one lender to the other to see if they can beat the interest rate.
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