Nobody walks into a dealership hoping for a high interest rate, yet plenty of people drive away with one — usually because they accepted the first number put in front of them and assumed it was the only number available. It rarely is. Here’s how rates actually get set, and how to make sure you’re not paying more than you need to.
Why rates
differ from person to person
An interest rate is a lender pricing risk. The same vehicle, on the same lot, on the same day can carry very different
rates for two different buyers, because the lender is mostly looking at you:
Your credit history. A track record of paying on time is the biggest factor in qualifying for the lowest rates. A thin file or a rough patch usually means a higher rate or a smaller approval — not necessarily a “no.”
The vehicle. Newer vehicles with lower kilometres generally get better rates and longer available terms than older ones, because the loan has to make sense against the vehicle’s remaining life.
Your down payment or trade. The less you borrow relative to what the vehicle is worth, the more comfortable a lender is — and comfort shows up in the rate.
The term. A shorter term usually carries a lower rate and always costs less interest overall, at the price of a higher monthly payment.
None of that is a secret, but it helps to know it before you apply, because some of it — down payment and term especially — is within your control.
Why the first offer isn’t the last word
When you finance through a dealership, your application doesn’t go to one lender. It goes to several — banks and finance companies the dealership works with — and they don’t all answer the same way. One may approve you at its best rate; another may approve a smaller amount or a shorter term. Part of my job is putting those responses side by side and showing you the differences in plain numbers: the rate, the term, and the total cost of borrowing over the life of the loan, not just the monthly payment.
There are also manufacturer programs to know about. On new vehicles, Mitsubishi regularly offers promotional financing on approved credit that can be well below standard bank rates. Those programs don’t exist on used vehicles, which is one reason a new vehicle sometimes costs less to finance than a cheaper used one. It’s worth running both before you decide.
What an “expert on your side” actually means
It isn’t a slogan. It means the person across the desk will tell you which lender approved you, show you the rate and the total cost of borrowing in writing, and explain what would have to change — a bit more down, a shorter term, a different vehicle — to get a better one. If the honest answer is “this approval is the best available for you right now, and here’s why,” you should hear that too.
That’s how I work. I’m a salesperson, and I do well when my customers do — a fair rate on the right vehicle is what brings people back and sends their friends in.
If you’d like to know where you stand before you start shopping, you can get pre-approved and plan around a real
approval instead of a guess. I’m at Valley Mitsubishi, 2350 Enterprise Way in Kelowna, Monday to Saturday, 10 AM to 5 PM — or call me at (778) 363-1453. I don’t just sell cars — I help you buy the right car.—
Jayson Gazloff, Sales Consultant, Valley Mitsubishi
