Vehicle loan interest rates refer to the percentage of the loan amount that a borrower is charged for the privilege of borrowing money to purchase a vehicle. These rates vary depending on a number of factors, including the borrower’s credit score, the term of the loan, and the type of vehicle being purchased. For example, a borrower with a good credit score may qualify for a lower interest rate than a borrower with a poor credit score.
Vehicle loan interest rates are important because they can have a significant impact on the total cost of a vehicle. A borrower who secures a lower interest rate will pay less interest over the life of the loan, while a borrower who secures a higher interest rate will pay more interest. As a result, it is important for borrowers to compare interest rates from multiple lenders before choosing a loan.