What Determines Your Auto Loan Rate in Arab, AL?
A handful of factors influence your Alabama auto loan interest rate, including the loan amount, your credit score, your income, the age of the car, the down payment, and your loan's term (the length of the loan). A low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Arab dealer could lead to a higher interest rate. But what's so bad about a high interest rate? The higher your interest rate is, the more you pay each month and the more you spend over your loan’s term. A difference of just one or two percent could mean spending hundreds more on interest.
How Do I Lower My Auto Loan Rate in Arab, AL?
You can use tools like our Interest Rate Estimator to get an idea of what your rate might be before you complete an application for a car loan in Arab, AL. If you've filled out your information and aren't liking the percentage you see, what can you do to lower it?
The loan term is one thing you have total control over. Most auto loans in Arab have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Longer terms attract many borrowers because they usually have a lower monthly payment. However, a longer term also tends to come with a higher interest rate. If you can afford a bigger monthly payment, it's smart to choose a shorter term. The Auto Payment Calculator shows what your monthly payments might look like with different terms and interest rates to help you determine what you might be able to afford.
If you have less than ideal credit, boosting your score could help lower your interest rate. Our Guide to Better Credit for Auto Financing will help you understand what goes into a credit score and how you can quickly bring it up. Your credit score will take some effort and time to build, but it's worth it to get those lower Alabama car loan rates.
Taking the time to hunt down the right lender can also help you snag a lower rate. While lenders will look at the same information, you won't see the same interest rate from each one. You need to shop around and compare offers to find the best auto loan rate in Arab, AL — even if you don't have the highest income or best credit. You don't want to go with the first offer you receive because there could be a better one right around the corner. Keep in mind some lenders allow for negotiation, so you can take an offer from one lender to the other to see if they can beat the interest rate.
Use myAutoloan to Check the Best Auto Loan Rates in Arab, AL
myAutoloan is dedicated to helping you find the lowest car loan rates in Arab, AL no matter your credit score or the type of car you're buying. You can look at up to four loans at once so you can find the right deal. Simply complete our secure online application, choose the loan that looks best to you, and visit your Arab dealer to purchase a new car. Apply now to see today's lowest interest rates!