A recent survey conducted by the car-dealing website Carvana found that 71% of U.S. consumers who have taken out an auto loan are not aware of the total amount of interest they paid on their last loan.
What Will My Interest Rate Be on an Auto Loan?
Auto loan interest rates are a tricky subject, which is probably why so many consumers are in the dark about them. If you want to know what your interest rate is going to be on your next auto loan, there is no definitive answer. That probably isn't the response you are looking for, but it's the truth.
Interest rates vary based on a number of factors. Your credit profile and score, how much of down payment you can afford, the model year of the car you buy, and what state you live in are among the factors that determine it.
Other Survey Findings
Carvana's survey unearthed a couple of other interesting tidbits:
- 68% of consumers with a college degree or higher don't know the total amount of interest they will owe (or owed) on their most recent auto loan
- 77% of those in households earning less than $50,000 a year are in the dark on the total cost of their loan
- 69% of individuals don't understand what a 1% point reduction would save them
The survey was conducted online on April 9-13 of 2015 by Harris Poll on behalf of Carvana. It polled over 2,000 U.S. adults aged 18 or older.
Be Informed and Save
Being informed on the subject is going to give you power when it comes to finding the right loan provider. Each lender is going to employ a slightly different process when determining your interest rate, which means it will differ from place to place.
With this in mind, you need to do your research, get up to speed on your credit score and reports, and shop around to make sure you are getting the best possible rate. Every percentage point matters; what may seem like a negligent difference can add up to a difference of thousands of dollars over the course of the loan.
Getting the Best Interest Rate
Researching different auto financing rates can be time-consuming and headache-inducing. Don't let it overwhelm you, just team up with Auto Credit Express instead. Our team will work to get you the best interest rate based on your credit profile. Get started today by filling out our quick, easy and secure online application.