What Are the Current Chevy Financing Rates?
If you're looking to buy a new or used car, it's vital to familiarize yourself with the current Chevy financing rates and how they affect your auto loan. Several important factors play into the financing rate that you receive, including the model you want to purchase and your credit score history. To learn more about financing, visit us at Gillman Chevrolet Harlingen today.
What is a Financing Rate?
When you decide to finance a vehicle, you're practically borrowing the money from an external bank to cover the entire cost upfront. Since you likely need multiple years to pay this amount back, the lender places an interest rate on the overall fee. Commonly expressed as a percentage, this financing rate represents the cost of borrowing money.
Most of the time, your interest rate will be calculated and represented as the Annual Percentage Rate (APR) on your new Chevy vehicle contract. The APR gives you an idea of what you'll owe beyond just the interest rate since it also includes any associated fees that come with purchasing your vehicle. Always refer to this number when attempting to create an appropriate budget for your next car.
What Determines a Vehicle's Financing Rate?
The interest rate for your car loan will vary depending on several factors. If you sign a loan with a shorter term like three years, you'll pay less interest but need to pay higher monthly payments. On the other hand, long loans have higher interest payments but more manageable costs overall. If you have a higher credit score, you will get more preferential rates than those with poor credit, so you should always improve it as much as possible before applying.
The type of vehicle you purchase also matters - lenders put higher interest rates on new cars since they're seen as more of a risk. You can also decide to make a large initial down payment, lowering the value that you need to pay interest on.
Find Your Next New Chevy Vehicle In Harlingen, TX, Today
If you want to get started with the vehicle financing process, contact our Harlingen, TX, Chevy dealership. Once you're here, be sure to ask about our current new Chevy specials to get the best rates possible. Give us a call or stop by today for more info!