How to Get a Good Interest Rate on a Car Loan
When vehicle shoppers start their search for their next vehicle, they often have plenty of questions regarding automotive financing. Some drivers might be wondering, “How can I get a good interest rate on a car loan?” To educate drivers, our team here at Auto Depot Sudbury has put together all the information drivers need to know about car loan interest rates, and how they’re determined.
Your Credit Score Plays An Important Role
A driver’s credit score is one of the most important factors that influence a car loan’s interest rate. The higher a driver’s credit score, the more likely they’ll be able to qualify for better interest rates. Drivers who wish to improve their credit score before applying for automotive financing can do so by maintaining a good credit utilization ratio (typically, 30% or less) and by paying bills on time.
Poor Credit Score? Add a Cosigner
Fortunately, there are still ways for drivers with average or poor credit scores to improve their chance of qualifying for a good interest rate. Drivers can add a cosigner to their loan. Depending on how good the cosigner’s credit history is, this may help the driver qualify for a lower interest rate on their car loan.
Increase the Size of Your Down Payment
The larger a driver’s down payment, the less risk they pose to the lender they’re working with. Because of this, drivers who can afford to make a larger down payment on their vehicle purchase will be able to qualify for lower interest rates, as well. Because of this, drivers are encouraged to make their down payment as large as possible when shopping for a new vehicle.
Increase the Size of Your Down Payment
The larger a driver’s down payment, the less risk they pose to the lender they’re working with. Because of this, drivers who can afford to make a larger down payment on their vehicle purchase will be able to qualify for lower interest rates, as well. Because of this, drivers are encouraged to make their down payment as large as possible when shopping for a new vehicle.
Wondering where to shop for pre-owned cars in or near Sudbury, Ontario? Auto Depot Sudbury has an impressive selection of vehicles for drivers to choose from. By exploring our online inventory, drivers can shop for their next vehicle without having to leave home. Have any questions or inquiries for the Auto Depot Sudbury team? Get in contact with us by calling (705) 673 – 6079 or by sending us a message online.