Can you lock in interest rates on car loans?
Some manufacturers offer to lock in rates on custom orders, so you can take advantage of current deals even if the car isn’t on the lot yet. With many automakers experiencing inventory shortages due to supply chain issues, this can be a great opportunity to save money on a new car if you qualify.
Rate lock programs
Rate lock programs usually come from automakers when you buy a new vehicle that dealerships don’t have in stock. For example, eligible borrowers may be able to lock in a low APR rate, such as 0.9% or 1.9% on a custom-ordered car financed by a captive lender. Currently, automakers like Ford are offering locked-in interest rates on certain vehicles, while luxury consumers can get this benefit with BMW.
To qualify for these programs, you probably need to have good credit. Most automakers that offer locked-in interest rates require you to take delivery of the vehicle within a certain time frame, usually 60 to 90 days. However, with current models taking longer to hit showrooms and consumers’ hands, some borrowers may wonder if their locked-in rates will hold.
In most cases the answer is yes, a rate lock should remain in effect if the delay in delivery of the vehicle is due to circumstances beyond your control. Some automakers that offer locked rates may give eligible consumers a choice between the locked rate offer from the time they ordered or a future offer available at the time of delivery. These scenarios may not always be the case, so be sure to check with your reseller if your order is delayed.
Can I qualify with bad credit?
If you’re a borrower with bad credit, participating in a rate lock program or even qualifying to purchase a new vehicle can be difficult, but it’s not impossible. If you’re having trouble qualifying for a car loan, remember that you probably need more documents to get a loan than someone with better credit.
If you’re looking for a dealer who can approve you for a car loan but you don’t know where to turn, Auto Express Credit wants to help. We have cultivated a nationwide network of specialist finance dealers who can help you through many difficult situations. Simply complete our quick and free auto loan application form. There’s no obligation, so get started right away!