How Do Lenders Decide Auto Loan Rates?

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Getting ready to purchase a car in the Streamwood-Schaumburg area? We’re here to help you understand auto loan rates, so you can figure out how much it’s really going to cost.

Financing a Car

Financing a car is a breeze if you have great credit. You’ll be able to qualify for no-interest loans on many new vehicles. Check out your latest credit report before you go shopping to make sure it’s accurate. You can even get pre-approved from lenders ahead of time.

Car Financing Factors

  • Your financial background. In addition to your credit score and credit history, lenders will also consider your income to debt ratio.
  • Loan terms. What’s your down payment? How much are you borrowing? What’s the loan term for repayment? Interest rates will be lower if these answers show lower risk.
  • Vehicle age. Loan terms are generally more attractive for new vehicles.

Relationships are Key

If you’ve banked with the same institution for a long time, you might get a better rate. And at Elgin Hyundai, our goal is to build long-lasting relationships with our customers, before you purchase your car and afterward, too. Contact our financing department for more information.
Categories: Finance

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