Many different factors determine the interest rate assigned to your loan. The first is your credit score, and the number itself is significant, but so are the remarks. If you have a high score but many delinquents or missed payments, this can affect your rate. Your loan term is an essential factor, as well.
The longer the duration of your loan, the more risk acquired by the lender, resulting in a higher interest rate. In addition to the length of the term, your down payment is another important determinant in your rate. Putting more money down decreases the risk of the loan, resulting in a lower interest rate.
The status of your vehicle is another factor used to determine the rate of your loan. New cars are usually incentivized at dealerships, which means they likely charge lower rates than if you purchased a used vehicle.
Your debt-to-income ratio is another strong determinant of your interest rate. IF you have a large amount of debt, that can show lenders that you are a riskier investment.