What Is a Good Interest Rate for a Car Loan?
Good interest rates on car loans can be very beneficial for those looking to purchase a new vehicle. It helps to lower the overall cost of the loan, making it easier for individuals to make payments. A low interest rate means a lower monthly payment, decreasing the amount of money you owe. With good interest rates, you may even be able to save some money over the course of your loan!
Visit our Chevrolet dealership near Frankfort to learn how having a good interest rate may improve your credit score and financial standing. Interest rates vary from lender to lender so it's important to compare offers before choosing. Low-interest car loans are an excellent way to acquire a vehicle without breaking the bank!
#1
What Credit Score Do You Need for Chevrolet Financing?
Typically, a "prime" score is above 680 for Chevy financing, however, you can still qualify for an auto loan if your credit score is lower than that. The higher your credit score, the better the interest rates available to you.
If you have bad credit or no credit history, you can speak with our Chevy finance specialists about other auto loan offerings, like subprime financing and our Bankruptcy Car Loan Program.
#2
What Is the Smartest Way to Finance a Car?
The smartest way to finance a car is often the way that allows you to borrow the least amount of money, helping you save over the course of the loan in interest. For example, you can borrow from a car dealership, credit union or bank, but you may want to choose the option with the lowest interest rates.
It's also a smart idea to put a significant down payment toward your purchase, as this lowers your monthly payment cost and typically enables you to qualify for better interest rates.
#3
What Is a Good APR?
A good Annual Percentage Rate (APR) is usually the lowest APR you can qualify for. The APR includes the interest rate and fees that are part of the loan, all of which impact your monthly payment amount. Get pre-approved to see what interest rates you qualify for.
The APR you can qualify for is tied to your credit score, down payment amount and the term length of your loan. It can also be impacted by the economy and the types of risks lenders are willing to take.
#4
What Should You Consider When Choosing an Auto Loan?
First, consider what kind of car you can afford based on your down payment, loan term length and APR. Reach out to our Chevrolet finance team for an in-depth review of loan rates, payment plans and more!