How to Score the Best Interest Rates on a Used Car Purchase

Are you considering about taking out a loan to finance the purchase of a used car from a place like 443 Auto Sales? How can you get the best interest rate(s)? 

Tips to Get the Best Interest Rates

For starters, shop around and see what different lenders are offering. It’s a good idea to approach at least three potential lenders and inquire about their rates, terms and fees. It helps if you’ve got a credit score that’s 670 or higher– that way they know they can trust you’ll pay them back on time and in full without much hassle. 

If your credit score needs improving, do what you can to pay your bills on time and don’t overspend on stuff you don’t really need. The higher your credit score the lower your interest rate, so there’s your incentive to improve your credit score. 

Keep in mind the total loan amount rather than the monthly payment. You don’t want to borrow more than you actually need, because if you do, you could end up paying more interest over the loan term. Monthly payments matter when you’re calculating how much you want to spend for the vehicle– otherwise, focus on the total loan amount. 

When you do go to apply for loans, “hard inquiries” are generated. Ideally, limit loan applications to a 14-day period so that all new applications for credit only count as a single inquiry thanks to the FICO credit scoring model that lets you do this– it’s known as “rate shopping” and won’t hurt your credit score.

Finally, once you’ve done some research and made inquiries, compare the quotes you got to see which one makes the most sense to you. This way you can obtain the loan with the best interest rate to help make your vehicle purchase an affordable reality. 

443 Auto Sales of Lehighton, PA, does offer financing help.