Car Loan Interest Rates: How to Get the Best Deal (2024 Guide)
The interest rate on your car loan can dramatically impact the total cost of your vehicle. Even a small difference in APR can save you thousands of dollars over the life of the loan. This guide provides actionable steps to get the best possible rate in today's market.
Overview
Understanding how interest rates are determined is the first step towards getting a better deal. We'll break down the factors that influence your APR, from credit score to loan term, and provide strategies to improve your rate and negotiate effectively.
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FAQ
A good car loan interest rate depends on your credit score. In general, rates below 5% are considered excellent, while rates above 10% may indicate a need to improve your credit or shop around for better deals.
No. Dealers often mark up interest rates to increase their profits. It's essential to shop around for rates and negotiate.
Longer loan terms typically have higher interest rates to compensate the lender for the increased risk. Shorter terms usually have lower rates.
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