What Determines Your Auto Loan Rate in Foley, AL?
A handful of factors affect your Alabama auto loan rate, including the loan amount, your credit score, your income, the down payment, your loan's term (the length of the loan), and the car's age. A low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Foley dealer could result in a higher interest rate. But what's so bad about a high interest rate? The higher of an interest rate you have, the higher your monthly payment becomes and the more you spend over your loan’s term. Even a rate one or two percent higher could mean spending hundreds more on interest.
How Do I Get a Lower Car Loan Interest in Foley, AL?
With tools like our Interest Rate Estimator, you can get an idea of what your rate might be before you complete an application for a car loan in Foley, AL. If you've put in your information and are unhappy with the percentage you see, what can you do to lower it?
The loan term is one element you have a lot of control over. Most Foley car loans have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Many borrowers take longer terms because they usually mean a lower monthly payment. However, a longer term also tends to come with a higher interest rate. If your budget allows for a higher monthly payment, it's smart to choose a shorter term. The Auto Payment Calculator shows what your monthly payments might look like depending on different interest rates and terms to help you decide what you might be able to afford.
If your credit is far from great, improving 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 may take some more time and work, but it's all worth it for getting those lower auto loan rates in Alabama.
Putting effort into finding the right lender can also help you secure a lower rate. While lenders take the same information into consideration, each one might give you a different interest rate. You need to compare offers and shop around for the best auto loan rate in Foley, AL — even without a high income or credit score. You shouldn't go with the first offer you receive because there might be a better one just around the corner. Don't forget some lenders will negotiate, so you can take your offer from one lender to another to see if they're willing to give an even lower rate.
Use myAutoloan to Check the Best Auto Loan Rates in Foley, AL
myAutoloan is here to help you get the lowest auto loan rates in Foley, AL no matter what type of car you're buying or your credit score. We'll show you up to four loans at once so you can find the best deal. Fill out our simple and secure online application, choose the best loan for you, and visit your Foley dealer to purchase a new car. Apply now to check today's lowest interest rates!