Two people financing the exact same car can end up with noticeably different interest rates — and it's rarely random. Lenders price risk, and a handful of factors consistently move the needle more than anything else.
1. Your credit history
Lenders want to see a track record of paying things back on time. A clean credit file with a consistent repayment history generally unlocks sharper rates, while missed payments, defaults, or a high number of recent credit enquiries can push your rate up — or narrow which lenders will even consider you. It's one of the first things checked, and often the biggest single swing factor in the rate you're offered.
2. Loan-to-value ratio (how much deposit you're putting in)
The bigger your deposit relative to the asset's value, the less risk the lender is carrying, and the better your rate tends to be. A 100% loan with no deposit will almost always price higher than the same loan with 10–20% down, since the lender has a smaller buffer if the asset needed to be resold.
3. The asset itself — age, type and how it holds value
Lenders factor in how well an asset retains its value and how easily it could be resold if things went wrong. A near-new, popular vehicle model is lower risk than an older, more niche asset — and that's reflected in the rate offered. This is also why prestige and exotic vehicles can sometimes attract different pricing structures than everyday cars.
"Rate isn't set by one number — it's the combination of you, the asset, and the lender you're matched with."
Exodus Finance4. Your loan term
Longer terms spread your repayments out, but they can carry a slightly different rate profile to shorter ones, and you'll pay more in total interest over the life of the loan even if the monthly figure looks more comfortable. It's worth running both scenarios side by side before deciding.
5. Which lender and product you're matched to
This is the one most people don't realise they have real control over. Different lenders specialise in different borrower profiles and asset types, and pricing genuinely varies between them for the exact same scenario. This is really the whole point of comparing across a panel of lenders rather than just taking the first offer from your regular bank — the same applicant can receive meaningfully different offers depending on which lender's risk appetite matches their situation.
Key takeaways
- Credit history is usually the single biggest factor in your rate.
- A larger deposit lowers the lender's risk and typically lowers your rate.
- Newer, easily resellable assets generally attract better pricing.
- Comparing lenders matters — the same borrower can get different offers from different lenders.
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