What Determines Your Auto Loan Rate in Scranton, PA?
A handful of factors contribute to your Pennsylvania auto loan interest 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 high debt-to-income ratio, poor credit score, or choosing an older vehicle at your Scranton dealership 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 becomes and the more you spend over the term of your loan. Just one or two percent more could mean spending hundreds more overall.
How Do I Lower My Auto Loan Rate in Scranton, PA?
With tools like our Interest Rate Estimator, you can get a feel for what your rate could be before having to apply for a car loan in Scranton, PA. If you've filled out your information and are unhappy with the percentage you see, how can you lower?
The loan term is one element you can control. Most auto loans in Scranton have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Longer terms will tempt many borrowers because they typically have a lower monthly payment. But longer terms tend to also come with higher interest rates. If your budget allows for a higher monthly payment, it's better to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment with different interest rates and terms to help you decide what you might be able to afford.
If your credit is less than stellar, increasing your score could decrease your interest rate. Our Guide to Better Credit for Auto Financing can help you understand where your credit score comes from and which steps you can take to bring it up fast. Your credit score will take some effort and time to build, 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 get a lower rate. While lenders will use the same information, you won't receive the same interest rate from each one. Shopping around and comparing offers will help you find the best auto loan rate in Scranton, PA — even if you don't have the highest income or best credit. You don't want to choose the first offer you get because there might be a better one just around the corner. Keep in mind some lenders allow for negotiation, so you can take an offer from one lender to the next to see if they'll beat the interest rate.
Discover the Best Auto Loan Rates in Scranton, PA with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Scranton, PA regardless of your credit score and the type of car you're buying. We'll present you with up to four loans at once so you can find the right deal. Fill out our simple and secure online application, select the best loan for you, and visit your Scranton dealer to purchase a new car. Apply now to see today's lowest interest rates!