Calculating Car Loan Interest
One of the most frequent questions people have in regards to their auto finance application deals with what kind of interest rates they can expect. The answer always given is that it really depends because it simply does.
Interest rates, on any loans including auto loans, varies from person to person and in relation to certain criteria that the auto financing agency will look at. Just like when you apply for auto insurance the insurance agency can’t determine your cost without having your driving record.
Just because you may have a few smudges on your credit history, have bad credit, or have been through a bankruptcy don’t assume that you will be paying the highest interest rates out there. Different lenders look at different criteria including things like job stability, whether you own a home or have lived in one location for a particular amount of time, and monthly income amongst other things.
Customers with bad credit don’t need to fear the worst since there are dealerships that have designed their finance departments to specialize in bad credit auto loans.