How Are Gardendale, AL Auto Loan Rates Determined?
Various factors impact your Alabama auto loan rate, Including your credit score, your income, the amount of the loan, 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 Gardendale might lead to a higher interest rate. But is a high interest rate so bad? The higher of an interest rate you have, the higher your monthly payment is and the more you spend over the term of your loan. Just one or two percent more could mean spending hundreds more on interest.
How Do I Lower My Auto Loan Rate in Gardendale, AL?
You can use tools like our Interest Rate Estimator to get an idea of what your rate might be before having to apply for a car loan in Gardendale, AL. If you've plugged in your information and are unhappy with the percentage you see, what can you do to lower it?
The loan term is one thing you can change on your own. Most car loans in Gardendale are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Many borrowers take longer terms because they usually have a lower monthly payment. But longer terms tend to also come with higher interest rates. If you can afford a bigger monthly payment, it's smart to choose a shorter term. The Auto Payment Calculator shows what your monthly payment might be with different terms and interest rates to help you see what might work for your budget.
If your credit is far from great, raising your score could bring your interest rate down. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and which steps you can take to bring it up fast. It may take some time and work to better your credit score, but it's worth it for those lower Alabama auto loan rates.
Taking the time to hunt down the right lender can also help you achieve a lower rate. While lenders will use the same information, you won't receive the same interest rate from each one. Shopping around and comparing offers will help you find the best auto loan rate in Gardendale, AL — even if you don't have the best credit or income. You don't want to go with the first offer you receive because there might be a better one just around the corner. Keep in mind some lenders leave room for negotiation, so you can take your offer from one lender to another to see if they're willing to give an even lower rate.
Find the Best Auto Loan Rates in Gardendale, AL with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Gardendale, 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 get the right deal. Complete our secure online application, select the best loan for you, and head to your Gardendale dealer to purchase a new ride. Apply today to see the current lowest interest rates!