What Determines Your Auto Loan Rate in Philadelphia, PA?
Various factors impact your Pennsylvania auto loan rate, Including your credit score, your income, the amount of the loan, 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 Philadelphia could lead to a higher interest rate. But why worry about a high interest rate? The higher your interest rate, the more you pay each month and the more you spend over the life of your loan. A difference of one or two percent might not seem like much, but it could mean spending hundreds more on interest.
How Can I Get a Lower Car Loan Rate in Philadelphia, PA?
Using tools like our Interest Rate Estimator can help you get a feel for what your rate might look like before you complete an application for a car loan in Philadelphia, PA. If you've put in your information and are unhappy with the percentage you see, what steps can you take to lower it?
The loan term is one factor you can control. Most auto loans in Philadelphia have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Longer terms will tempt many borrowers because they usually mean a lower monthly payment. But longer terms are also likely to come with higher interest rates. If you can afford a higher monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator estimates what your monthly payment could be with different interest rates and terms to help you see what you might be able to afford.
If your credit is far from great, increasing your score could decrease 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. Your credit score may take some more time and work, but it's worth it for those lower Pennsylvania auto loan rates.
Taking the time to hunt down the right lender can also help you secure a lower rate. While lenders will use the same information, each one might give you a different interest rate. You need to shop around and compare offers to find the best auto loan rate in Philadelphia, PA — even if you don't have the best credit or income. You shouldn't go with the first offer you receive because a better one might be waiting just around the corner. Keep in mind some lenders leave room 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 Philadelphia, PA with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Philadelphia, PA no matter what type of car you're buying or your credit score. You can see up to four loans at once so you can get the right deal. Complete our secure online application, choose the loan that looks best to you, and head down to a dealer in Philadelphia to purchase a new ride. Apply now to see today's lowest interest rates!