Can You Lock In Interest Rates On Auto 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. Since many auto manufacturers are experiencing inventory shortages due to supply chain issues, this can be a good opportunity to save money on a new car if you qualify.
Rate Lockout Programs
Rate foreclosure programs typically come from car manufacturers 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 frozen interest rates on certain vehicles, while luxury consumers can take advantage of this benefit with BMW.
To qualify for these programs, you probably need to have good credit. Most automakers that offer frozen interest rates require you to take delivery of the vehicle within a certain timeframe, typically 60 to 90 days. However, since current models take longer to enter showrooms and consumers, some borrowers may wonder if their frozen rates will be maintained.
In most cases the answer is yes, a rate lock should continue to remain in effect if the delay in delivering the vehicle is due to circumstances beyond your control. Some automakers that offer rate blocking may give qualifying consumers the choice of the blocked rate offer from the time they order or a future offer available at the time of delivery. However, these scenarios may not always be the case, so be sure to check with your dealer if your order is delayed.
Can I Qualify With Bad Credit?
If you’re a borrower with bad credit, getting into a rate foreclosure program or even qualifying to purchase a new vehicle can be difficult, but it’s not impossible. If you are having trouble qualifying for a car loan, remember that you will likely need more documents to get a loan than someone with better credit.
If you’re looking for a dealership who can approve you for a car loan but aren’t sure where to turn, Auto Express Credit wants to help. We have developed a nationwide network of special finance dealers who can help you in many difficult situations. Simply fill out our quick and free auto loan application form. There is never any obligation, so get started right away!