When you apply for a car loan, you may expect factors like your credit score and income to determine the car loan interest rate you receive. However, many borrowers don’t realize that there are some unexpected factors that lenders consider when deciding how much interest to charge. These hidden elements can make a significant difference in your monthly payments and the total cost of your loan.

Here are five surprising factors that can influence your car loan interest rate:

1. The Type of Car You Buy

Many people think that all cars get the same loan terms, but that’s not true. The type of car you choose—whether new or used—can impact your car loan interest rate. Generally, loans for new cars come with lower interest rates because they are considered less risky for lenders.

On the other hand, if you’re buying a pre-owned vehicle, you may find that the used car loan interest rate is higher. Lenders consider used cars riskier because their value depreciates faster, and they may have more maintenance issues. If you’re planning to buy a second-hand vehicle, be prepared for a slightly higher used car loan interest rate compared to a new car loan.