What Determines Your Auto Loan Rate in Huntsville, AL?
Several factors affect your Alabama auto loan interest rate, including your income, your credits core, the loan amount, the car's age, the down payment, and the length of the loan (your loan's term). A high debt-to-income ratio, poor credit score, or choosing an older vehicle at your Huntsville dealership might lead to a higher interest rate. But what's so bad about a high interest rate? The higher your interest rate gets, the higher your monthly payment is and the more you spend over your loan’s term. Just one or two percent more could mean you spend hundreds more on interest.
How Do I Get a Lower Car Loan Interest in Huntsville, AL?
With tools like our Interest Rate Estimator, you can get an idea of what your rate might be before having to apply for a car loan in Huntsville, AL. If you've filled out your information and aren't happy with the percentage you see, what can be done to lower it?
The loan term is one aspect you have a lot of control over. Most car loans in Huntsville have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Many borrowers take longer terms because they typically 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 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 determine what you might be able to afford.
If you have less than stellar credit, increasing 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 how you can quickly bring it up. Your credit score will take some effort and time to build, 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 snag a lower rate. While lenders will consider the same information, you won't see the same interest rate from each one. You need to compare offers and shop around for the best auto loan rate in Huntsville, AL — even if you don't have the best credit or income. You shouldn't go with the first offer you receive because there could be a better one right around the corner. And, some lenders will negotiate, 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 Huntsville, AL
myAutoloan is committed to helping you find the lowest auto loan rates in Huntsville, AL no matter what type of car you're buying or your credit score. You can see up to four loans at once so you can find the best deal. Simply complete our secure online application, select the best loan for you, and purchase a new ride from your {City}} dealer. Apply now to check today's lowest interest rates!