The Latest Finance News and Information

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Do you have finance questions about interest rates, finance terms, or other questions related to financing a used luxury vehicle in Phoenix? Here at iAUTOHAUS, we can help answer some of those questions and help you find appropriate financing for your next vehicle. Keep reading for the answers to common finance questions we hear from our customers each day.


What is a Good Interest Rate for a Car Loan?

While shopping for a new or pre-owned vehicle in the Phoenix area, you’re probably wondering how to secure an auto loan with an interest rate you can feel good about. Right off the bat, you’ll need to understand that your credit score will have a direct impact on what kind of interest rate you’re eligible for. So, what is a good interest rate for a car loan? This guide from the team in the finance department at iAUTOHAUS will help you avoid overpaying and give you a better understanding of the average Annual Percentage Rate (APR) for car loans.

How Do You Get the Best Interest Rate?

To get the best interest rate possible you’ll want to plan ahead. Here are some things Scottsdale car shoppers can do in order to secure an ideal interest rate:

  • Start by checking your credit history and note the score. The higher the credit score, the lower your interest rate will be. So, what is a good car loan rate?  It could be anywhere between approximately  6.25% and 18.50% depending on your credit score. 
  • You can apply for financing with iAUTOHAUS online to see what kind of interest rate you’re eligible for. We also offer an online payment calculator so you can get a quick look at how much your monthly payments will be.
  • Once you receive an offer, make sure to not only look at the monthly payment amount but also at the details of the loan agreement. You should be prepared to negotiate if the offer you receive is higher than you expected. 

What is the Average Interest Rate on a Car Loan?

The average interest rate on a three-year car loan is around 6.25% to 8%. However, your credit score as well as where you get the loan will influence what kind of interest rate and loan term you are offered. It’s a good idea to shop around and compare the car loans and interest rates offered to see which will best suit your budget.

Explore Your Financing Options at iAUTOHAUS 

Our finance specialists can help you secure a loan package that is tailored to your budget and get you behind the wheel of one of our high-quality pre-owned luxury vehicles. Contact us to compare rates and get the financing process started today. Meanwhile, check out our current pre-owned vehicle specials to take advantage of some of the best deals in the Chandler area.

Is Now a Good Time to Buy a Car?

Planning to shop for a new or used car near Phoenix? You may be asking, “Is now a good time to buy a car?” While the automotive market is still recovering from global chip shortages, that doesn’t mean it’s a bad time to buy a car. In fact, even with rising interest rates, now can be a great time to buy a car—especially if you plan on trading in your current vehicle. Learn more from the team at iAUTOHAUS, then visit us in Tempe to check out our extensive inventory of affordable pre-owned luxury vehicles today!

Is Now a Good Time to Buy a New Car?

New vehicle prices are still historically high and interest rates seem to be continually climbing, so is now a good time to buy a new car? It depends on your situation. If your current vehicle is nearing the end of its lifespan and frequently requires costly repairs, it could make sense to buy a new vehicle. The interest rates on a new car loan will be lower than that of a used car, but the higher sticker price can be a hurdle that many Scottsdale-area buyers will find difficult to overcome. It can also be tough to find the exact new vehicle you are looking for as inventory shortages persist. 

Is Now a Good Time to Buy a Used Car?

The average cost of a used vehicle has been falling recently, but they still aren’t quite as budget-friendly as they were previously. So, is now a good time to buy a used car? It actually can be an excellent time to purchase a pre-owned vehicle. Even with potentially higher interest rates, the loan term for a pre-owned vehicle loan is typically shorter than that of a new car, so you’ll save in the long run. When you take into account that a used luxury vehicle at iAUTOHAUS can cost as much as 30% less than a new model, buying used becomes even more attractive. You’ll also have a wide variety of vehicles to choose from, including a fine selection of used cars priced under $20,000, so you’re more likely to find the make and model that will suit your lifestyle and your budget.

Shop for a High-Quality Used Luxury Car Today at iAUTOHAUS!

Is now a good time to buy a car? Due to price and availability, you may wish to delay investing in a new vehicle. However, with the wide range of options in the pre-owned vehicle inventory at iAUTOHAUS, you’re sure to find the used BMW, Mercedes-Benz, Lexus, or premium electric vehicle you’ve always dreamed of, at a price that won’t break the bank. What’s more, we offer national and international shipping, so even if you live outside the Chandler area you can get a great used luxury car from us. Take a look at our current pre-owned vehicle specials to see how much you can save, and if you have any questions, please don’t hesitate to contact us online or give us a call at 480-317-0777.

Credit Scores

Many Phoenix drivers are unsure of whether or not they have a good enough credit score to finance a car. What credit score is needed to finance a car? Typically, the better the credit score, the better deal you’ll get on financing. In addition, Tempe dealerships like iAUTOHAUS offer finance options that can help you get behind the wheel of one of our high-quality used luxury cars with a payment plan that will suit your budget. Learn more about what credit score is needed to finance a car, then visit us to explore your options with the experts in our finance center.

Average Credit Score to Finance a Car

The average credit score for drivers who have recently secured an auto loan in and around Scottsdale is about 721 for a new vehicle and 657 for a used car. That being said, it is still possible for drivers to get car finance loans regardless of their credit score. However, you should note that the lower your credit score is, the higher interest you’ll pay. Here’s a quick look at the different categories for credit scores:

  • Superprime: 781 to 850
  • Prime: 661 to 780
  • Non-prime: 601 to 660
  • Subprime: 501 to 600
  • Deep Subprime: 300 to 500

How to Get Car Financing With a Low Credit Score

So, what credit score is needed to finance a car? The credit score to finance a car depends on what the lender is willing to work with. Here are a few things to keep in mind when looking at our car finance options:

  • Focus on Positives: Demonstrating that you’ve made positive financial actions will increase your odds of securing a loan. For instance, if you’ve never missed a credit payment, but your credit score has been marred by business debt, you’ll be in a better position.
  • Bring Proof: Bring pay stubs, proof of address, cell phone bills, auto insurance documents, and proof that you’re currently working. Any document that can show you’re responsible and you’re in a position to pay off your car loan despite your credit score will help. 
  • Show Collateral: If you own a home or are able to put down a substantial down payment (at least 25%), you will be more likely to qualify for auto financing and get a good interest rate as well.

Discuss Your Financing Options With iAUTOHAUS  

Still wondering what credit score is needed to finance a car? Stop by iAUTOHAUS and sit down with our finance specialists. We can help you apply for financing and determine whether or not a car finance loan is right for you. If you have any questions about the car buying process, contact us online or give us a call at %%di_phone%%. We look forward to putting you behind the wheel of the pre-owned luxury vehicle that is the ideal fit with your Chandler-area lifestyle and budget, so come see us today! 

Credit History

Wondering how to get a better interest rate on a car loan? The finance experts at iAUTOHAUS have the information you need on getting a lower interest rate on auto loans. Learn more about interest rates, how to improve your credit score, and more, then visit us in Tempe to explore your options today!

What Is a Good Interest Rate?

Your credit score and the requested loan amount will influence the interest rate you will be given in and around %%target city 2%%. The lender sets the interest rates, which are not negotiable. While calculating the interest rate (APR), a number of factors are taken into account, including credit history, payment-to-income ratio, debt-to-income ratio, loan-to-value ratio, and the number of existing open auto loans one has. 

As with any financial information, rates are always subject to change based on the current market and financial climate. Check out the estimated interest rates based on credit scores below:

  • Credit Score of 740+: 6.15%-8.39% 
  • Credit Score of 700-739: 7.25%-10.25%
  • Credit Score of 670-699: 7.89%-14.50%
  • Credit Score of 640-669: 10.14%-17.94%
  • Credit scores: 600-639: 11.50%- 18.99%

Getting a Lower Monthly Payment on an Auto Loan

How can I lower my monthly payment? Can you get a lower interest rate on a car loan? If you want to figure out how to get a lower interest rate on a car loan and/or a lower monthly payment, your best bet is to focus on your credit score and financial situation. Consider the following:

  1. Check Your Credit Score: Knowing your current credit score is essential as you embark on your car search. It will help you determine if you are already in a decent position to apply for financing or whether you need to improve your credit rating.
  2. Compare Offers: Compare rates and payment terms offered by multiple financial institutions to make the most informed decision and leverage negotiating power. If you don’t secure the best rate right away, you’ll often have the option to refinance down the line, once you’ve improved your credit by making your car payments on time.
  3. Extend the Term of the Loan: Many lenders are willing to increase the length of the loan by extending it from 60 months to 84 months. This reduces the monthly payment, which may help many buyers. Keep in mind that while extending the loan reduces the monthly payment, you may pay more in interest over the life of the extended loan.
  4. Make a Larger Down Payment: If you are able to afford a larger down payment on your chosen vehicle, you should consider that option. By doing this, you will reduce the amount of money you will need to finance in the long term. This can reduce your monthly payment and the amount of interest you will pay over the life of the loan. 
  5. Enlist a Cosigner: Having someone cosign your loan may help you get a lower interest rate on a car loan, especially if you have less-than-stellar credit.

Explore Your Financing Options With iAUTOHAUS

We’re here to answer any questions you may have about how to get a lower interest rate on a car loan. Meanwhile, learn more about the benefits of buying a used luxury car, then browse our current pre-owned vehicle specials to take advantage of some of the best deals in the Chandler area. If you have any questions, please feel free to reach out to our team.

Have questions about auto financing? Come to iAUTOHAUS!

It’s easy to apply for financing online at iAUTOHAUS, and we can help you secure the loan amount you need to get the luxury car of your dreams. Contact us or make the short trip from Chandler to chat in person about securing the financing you need. 

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