How to Get the Best Interest Rates on a Car Loan

Are you thinking of buying a car but money’s tight at the moment? If you need a car loan– and most people do– then how can you get the best interest rate(s)? 

Well, the interest rate you’ll pay is usually determined by your credit score. The higher your score, the lower the rate will be that lenders offer you. That’s because a higher credit score tells the lender you’ve been good about paying your bills on time and in full, and they like that… So, if your credit score is higher than, say, 660, you should get decent rates. So what do you do if your score is currently low? Work on improving it! Basically, in the coming weeks and months don’t spend money on things you don’t need or use. Take time to consistently pay your bills on time, paying down your debts, and paying “in full” if possible. 

Financing is available from many different people and places, from car dealers to banks, and, of course, friends and family, too. Ask around to see what kind of deals are currently available to you. If you have one loan offer, use it to negotiate with a car dealer so you can get his or her rate possibly lowered. Perhaps certain fees can be reduced or waived– it never hurts to ask. 

If and when you do secure a loan, no matter what the rate, try and keep it short– no longer than 5 years. Shorter terms tend to have lower rates and they give interest less time to accrue which, in turn, reduces total costs. 

Finally, it’s best to not try and buy a vehicle you truly can’t afford. If you make $20,000 a year, you probably shouldn’t buy a $70,000 car, right? And when you do borrow money, borrow it “cautiously.” You want to be sure you can keep up with your payments– they need to be “do-able” for you, rather than outrageous to the point where the lender repossesses the vehicle.

If you’re in the market for a used car in the Lehighton, PA area, the experts at 443 Auto Sales can help. As a buy here, pay here dealership, we can help you score the best loan rates around. For more information, contact us today