What you need to know about interest rates and what you want to know might be at two different ends of the spectrum. Still, when you’re shopping for a used car in the Langley area, there are some basic pointers you will want to keep in mind to help the car buying process go smoothly. Interest rates can vary based on countless variables, so being armed with as much information about your situation as possible will be helpful.
First, you will want to have a good idea of what your credit rating, or credit score is. This is the first thing any lender will look at when determining credit worthiness, down payment, and interest rate. Many people don’t realize the impact an interest rate can have on car payments and the bottom line. In fact, some are so excited to get into a vehicle, and have no idea what their credit standing is, that they are practically willing to pay any interest rate. Set yourself up for a successful buying experience and know before you go.
Surprisingly, geography plays a significant role with interest rates as well. Get a feel for your local economy and lending situation by doing a little more research on the web or speaking with a local car dealership like us at Pioneer Motors Langley .
It should go without saying that your ability to prove income or your ability to repay the car loan will also have an impact on what interest rate you receive. There was a time when self-employed individuals, contractors, artists, online retailers, etc. would have to struggle to find financing. Those days are passed us and there are financing options for practically any scenario. Be sure to have bank statements, pay stubs, reward letters, or some other proof of the income you plan to claim.
There could be a number of factors that impact the actual interest rate you receive. Some factors you can control, and some you can’t. The important thing to remember is to do your research and know where you stand. Then, consult with our finance team to learn what you need to know about interest rates with them. The more information you have, the better the decision you will be able to make.