How To Get A Lower Interest Rate On A Car Loan

Lots of different factors go into calculating the car loan terms available to you, and learning about them can help you get a lower interest rate on a car loan.

Drivers in Mount Pocono, Tobyhanna, Scranton, Stroudsburg and East Stroudsburg, and nearby communities can use the following information and strategies to increase their chances of having a lower interest rate on their car loan. They can also come to Ray Price Chevrolet for friendly guidance on the financing and insurance process from our experienced finance experts.

Check Your Credit Report

Your interest rate is set according to the perceived risk you create as a borrower. People with less-than-perfect credit histories get charged higher interest rates to offset the risk that they may default on their loan before being able to pay it in full.

All of this means that your credit score directly affects the car loans available to you and the interest rate you pay on them. Still, you may have lingering issues with your credit history that are the results of mistakes and inaccuracies.

To ensure you aren't being penalized for something you didn't do, request a free copy of your credit report from Equifax, Experian, or TransUnion-the three major credit bureaus. Look for outstanding debts you have paid off or accounts you did not open yet still appear on your record.

You can request to dispute certain instances like these on your credit report and have them removed. It can take quite a bit of effort and patience, but the result is an improved credit score that can put more money back in your pocket.

Know Your Car Loan Options 

You have many options at your disposal for an auto lender. This includes major banks, smaller local or regional banks, credit unions, specialty auto lenders, manufacturer institutions like GMAC, and more.

Explore every available option to look for the best rate possible. If one lender quotes you a rate higher than you expected, ask if there's anything they can do to double-check their math and lower the rate.

Weighing all your options is the single best strategy for finding a loan with a lower-than-average APR.

Your Car Budget 

Many people focus on monthly payments when buying a vehicle these days, but the total amount you pay affects the amount of risk you take on. In turn, more expensive cars usually have loans with higher interest rates, even if the monthly payments are reasonable.

The best approach is to set a budget cap along with a few different price ranges worth exploring within that budget, so you can walk away with a car both you and the bank knows you can afford.

Shorter Loan Period?

Shorter loans have a higher chance of being paid back on time, leading to lower interest rates. Consider a 60-month loan or lower if you want to find a more favorable rate.

Consider A Cosigner

If you have someone who is willing to share the risk of your loan amount, you can convince them to act as a cosigner on your behalf. Your credit rating gets averaged with the cosigners, so someone with a better score than yours can potentially lower your rate.

Get Further Information For How To Get A Lower Interest Rate On A Car Loan At Ray Price Chevrolet

Ray Price Chevrolet can not only help you find the perfect car, truck, or SUV to fit your vehicle needs, but we can also help you secure financing that works on your terms. Compare lenders, get financing tips, and negotiate for the lowest rate possible when you speak to one of our finance representatives.

Drivers from Mount Pocono, Tobyhanna, Scranton, Stroudsburg and East Stroudsburg can start finding both the car and financing they deserve by taking a look at our available inventory and booking an appointment today.