How Are Birmingham, AL Auto Loan Rates Determined?
Various factors affect your Alabama car loan rate, including your credit score, the amount of the loan, your income, the down payment, your loan's term (the length of the loan), and the car's age. A high debt-to-income ratio, low credit score, or purchasing an older car from a dealer in Birmingham could result in a higher interest rate. But why worry about a high interest rate? The higher of an interest rate you have, the higher your monthly payment is and the more you spend in total. Just one or two percent more could mean spending hundreds more on interest.
How Do I Lower My Auto Loan Rate in Birmingham, AL?
You can use tools like our Interest Rate Estimator to get an idea of what your rate might be before you start applying for auto loans in Birmingham, AL. If you've put in your information and aren't happy with the percentage you see, what steps can you take to lower it?
The loan term is one element you can change on your own. Most auto loans in Birmingham have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Many borrowers take longer terms because they usually have a lower monthly payment. But longer terms are also likely to come with higher interest rates. If you can afford a higher monthly payment, it's better to choose a shorter term. The Auto Payment Calculator shows what your monthly payment might be based on different interest rates and terms to help you figure out what you can afford.
If you have less than stellar credit, improving your score could help lower your interest rate. Use our Guide to Better Credit for Auto Financing to better understand what determines your credit score and the steps you can take now to raise it quickly. It may take some effort and time to increase your credit score, but it'll be worth it once you see those lower Alabama auto loan rates.
Waiting to find the right lender can also help you secure a lower rate. While lenders will look at the same information, you'll likely receive a different interest rate from each one. Shopping around and comparing offers will help you find the best auto loan rate in Birmingham, AL — even without a high income or credit score. You don't want to choose the first offer you get because a better one could be right around the corner. Don't forget some lenders will negotiate, so you can take an offer from one lender to another to see if they're willing to beat the interest rate.
See the Best Auto Loan Rates in Birmingham, AL with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Birmingham, AL regardless of your credit score and the type of car you're buying. We'll present you with up to four loans at once so you can get the right deal. Simply complete our secure online application, pick the loan that works best for you, and purchase a new ride from your {City}} dealer. Apply today to see the current lowest interest rates!