5 Hidden Factors That Impact Auto Loan Interest Rates
Purchasing a new car can be stressful at times. Here at Taz Loans, we want to take the stress out of the financing process and make it easy for you to own your favourite model at a reasonable rate. One of the first steps to purchasing a vehicle on a budget is seeking information to help you make informed choices. That is why we have compiled a list of five hidden factors that may impact auto loan interest rates. Keep reading to learn more!
Age of the Vehicle
New vehicles have a much higher depreciation rate than their used counterparts. That being said, lenders face a higher risk of losing money if they must repossess a car shortly after someone finances it. To account for increased risk, a newer car may have higher interest rates, especially for those with low credit scores or minimal down payments.
Likelihood of Theft
Some vehicles are more likely to be stolen than others. High-risk cars that are more likely to be stolen are riskier investments for lenders. Therefore, many lenders charge premium interest rates to counteract the theft risk. However, this may be offset by installing anti-theft devices.
Your employment history can play a significant role in determining your interest rates. Lenders commonly ask for proof of employment to ensure that you make a steady income and can pay off your loans on time. If your employment history isn’t the best, you may be able to counteract the higher interest rates by putting down a larger down payment.
Owning a home can play a significant part in determining your interest rates. It proves to lenders that you can handle substantial loans and are trustworthy to pay them off on time, leading to lower interest rates.
This may come as a surprise for some, but it’s true! Your relationship status can play a part in giving you lower interest rates for your auto loan. People in relationships, whether married or not, are more likely to receive lower interest rates than their single counterparts.
Finance Your Next Vehicle with Taz Loans!
Contact us to learn more about getting reasonable interest rates or to get started on an auto loan. At Taz Loans, we pride ourselves on delivering financing solutions to people from all walks of life. Whether you have good credit, bad credit, or no credit, we have financing for everyone!