How Are Car Loan Rates in Reading, PA Calculated?
A handful of factors contribute to your Pennsylvania car loan rate, Including your credit score, your income, the amount of the loan, the age of the car, the down payment, 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 Reading could result in a higher interest rate. But is a high interest rate so bad? The higher your interest rate, the higher your monthly payment becomes and the more you spend over the term of your loan. Even a rate one or two percent higher could mean spending hundreds more on interest.
Is There a Way to Lower My Reading Car Loan Rate?
Online tools like our Interest Rate Estimator will give you a feel for what your rate might look like before having to apply for a car loan in Reading, PA. If you've supplied your information and aren't liking the percentage you see, what can you do to lower it?
The loan term is one element you can change on your own. Most Reading car loans are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Longer terms attract many borrowers because they usually have a lower monthly payment. However, a longer term also tends to come with a higher interest rate. If you can afford a bigger monthly payment, it's wise to choose a shorter term. The Auto Payment Calculator estimates what your monthly payment could be based on different interest rates and terms to help you decide what might work for your budget.
If your credit is far from great, raising your score could decrease 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 today to bring it up quickly. It may take some time and work to better your credit score, but it's all worth it for getting those lower auto loan rates in Pennsylvania.
Taking some time to find the right lender can also help you snag a lower rate. While lenders will use 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 Reading, PA — even without a high income or credit score. You shouldn't go with the first offer you receive because there could be a better one right around the corner. Keep in mind 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.
Find the Best Auto Loan Rates in Reading, PA with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Reading, 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 best deal. Complete our secure online application, pick the loan that works best for you, and visit your Reading dealer to purchase a new car. Apply now to check today's lowest interest rates!