How to Qualify for Historically Low Interest Rates on Vehicles

Buying a vehicle can be a very major purchase.  Due to the high purchase price, most people need to take out a loan to finance a portion of the purchase price.  Fortunately, interest rates on auto loans today are incredibly low.  There are several factors that will need to be met in order for you to qualify for these historically low rates.  

Credit Report and Score

When providing a customer with a new auto loan, the first thing that a lender will take into consideration is the borrower's credit score.  The credit score is an indication of how likely you are to repay the loan as agreed.  If you have an good credit score and history with auto loan debt, it will not only help to ensure that you are going to qualify for the loan, but you will receive the lowest rate possible as well.  

Down Payment

While auto lenders are often willing to provide you with zero-percent down loans, a loan that comes with a higher down payment will provide less risk to the lenders.  Because of this, the lender may be willing to provide you with a lower interest rate if you put forth a larger down payment.  

Income Qualifications

Since auto lenders base their interest rates on the perceived risk of the loan, they will also factor in your income into their approval and rate decision.  If you have a strong and reliable source of income and can comfortably afford the loan payments, it will reduce the lender's risk and you will be more likely to qualify for the lowest rate options.  

If you are interested in obtaining financing for your next vehicle, contact us to learn more about how you can qualify for the best rate possible.