How Are Subaru Car Loan Rates Determined?
If you want to shop for your next vehicle with confidence, an important first step is understanding the auto financing process. To begin, your Subaru car loan rates can seriously impact your loan and how much you pay for your vehicle. We're outlining how these rates are determined at Jensen Subaru.
Subaru Car Loan Rates Defined
In addition to the sticker price of a vehicle, car loans also include interest, which is a direct fee that you owe to your lender (in addition to the cost of your car). Interest rates are typically expressed as a percentage, and there are many factors that can affect yours. While we always provide transparent pricing on our new Subaru vehicles, you'll want to make sure to factor these rates in when budgeting.
Your Buying Criteria
When you apply for Subaru financing, we'll start by collecting your buying criteria. This includes your housing info, employment info, and income. We also pull your credit to determine your credit score and history. These factors can all affect your car loan rate.
Your Lender
Your car loan rates are set by your loan lender. Lenders look at your buying criteria to determine if you are a safe or risky loan candidate. Safer applicants share several traits, such as high credit scores, regular income, and/or a low debt-to-income ratio. Lenders also consider the current market conditions, as well as your specific vehicle, to determine your rates. Risky vehicles, such as vehicles with higher mileage or a problematic history, will often get hit with higher rates.
Your Loan Specifics
Lenders also look at your loan specifics to determine your rates (and how risky of a candidate you are). Buyers that can make a sizable down payment can often get better rates. A shorter loan length, also known as loan term, can often also get a better rate.
Current Promotions
Qualified buyers can also benefit from Subaru incentives. Many manufacturer incentives include a low Annual Percentage Rate (APR), sometimes even as low as zero percent. This can help you save substantially on the cost of your vehicle.
Apply for Subaru Financing in Sioux City, IA
We strive to help every buyer secure Subaru financing with competitive terms. With our quick and streamlined financing process, you can get financing at our dealership in no time. Visit our Subaru dealership in Sioux City, IA, to get started today!
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Jensen Subaru
3909 Stadium Dr
Sioux City, IA 51106
- Sales: 712-255-3000
