People also ask
How to get the best interest rate on a car loan?
Ultimately, the most useful thing that you can do to get the best interest rate on a car is to come prepared. The best way to do this is to look up your credit history and subsequent credit score. A higher credit score signifies to lenders that you have a history of paying your bills on time, which results in a lower interest rate and vice versa.
What credit score is needed to get the lowest auto loan rates?
Credit scores of 719 (for a new car) or 655 (for a used car) or higher will help you qualify for the lowest auto loan interest rates.
How does your credit score affect your car loan interest rate?
Borrowers with a lower credit score may see higher auto interest rates. If your credit score is on the lower end (around 500), some lenders may offer higher interest rates. Taking steps to improve your credit score can go a long way toward getting a better interest rate.
What is the best length of a car loan?
The length of your car loan also makes a difference. Car loans today often run from 24 months (two years) to 84 months (seven years). The longer the loan term you choose, the lower your monthly payments. But your interest rate is likely to be higher, and you will end up paying more interest in total over time.