While there are many factors that play a role in the interest rate of your Chrysler loan, the most important is your credit score. Here at Cook Chrysler Dodge RAM, our friendly team of Chrysler credit and finance experts is happy to find a loan that works for you, regardless of your credit score. Here is an overview of how your credit score affects the interest rate on a car loan.
How Chrysler Financing Works
Before going into exactly how credit plays a role in car financing, it’s important to have an idea of how auto loans work. When you finance a Chrysler car, the lender is the owner of the car title until the loan is paid off. In essence, you have the legal right to drive the car, but it’s the lender that owns it.
When you are shopping for Chrysler loans, you’ll likely see numbers like the APR (annual percentage rate). This figure includes your interest rate as well as other fees that come with the loan. We recommend utilizing our car payment calculator to help get an idea of how much you can afford to pay each month.
What Factors Affect the Interest Rate?
- Credit score: Your credit score plays the largest role in the interest rate. The lower your credit score, the higher your interest rate will likely be.
- Credit history: Likewise, lenders will look at your credit history to determine if you have missed monthly payments.
- Loan term: Longer loan terms typically translate to lower monthly payments but higher interest rates.
- Down payment: You’ll typically get better interest rates by making a larger down payment.
Get the ball rolling on your Chrysler auto loan today here at Cook Chrysler Dodge RAM. Our friendly finance experts are ready to walk you through the process.
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