When you are looking for a new ride a low interest rate is definitely something worth getting excited about! AND your interest rate can vary greatly depending on the institution you borrow from, your credit score, your term length, and more.
Term Length Longer term loans often allow for a lower monthly payment, but the extra time of interest accumulating can also really add up. For example, when paid over the course of 48 months, a $25,000 loan at a 4.5% interest rate will result in monthly payments of $570 and a total cost of $27,364. When paid over the course of 84 months in $348 monthly payments, this same loan at the same interest rate costs a total of $29,190 — more than $1,800 pricier than at 48 months. (https://www.valuepenguin.com/auto-loans/average-auto-loan-interest-rates)
Lending Insitution Who you decide to borrow from can make a big difference in what you interest rate may be. Did you know credit unions tend to provide their members with the lowest APRs? When looking for that perfect car make sure you look for the perfect rate too!