Getting a better interest rate on your Car Loans Interest Rate is much more than having a high credit score. Your credit score plays a significant role, but other factors will affect the Car Loans Interest Rate you will get. Besides, getting a low-interest rate has never been easy. However, there are various things you can do to improve your rate. Your loan length, the age of the vehicle, and even the economy state are some factors that can impact the terms of your loan agreement.
Lenders will always check the vehicle’s age that you want to buy, with some lenders refusing to give loans on cars older than five years. Cars tend to depreciate over time. Hence, if you default to pay your car loan and the lender has to seize your vehicle and auction it, they may not get their full amount from the sale. However, you may still get a lender that will loan a car older than five years and charge a higher interest rate. The interest rate is to cater to the risk they are taking with that particular loan.