How Are Car Loan Rates in Montgomery, AL Calculated?
Various factors contribute to your Alabama auto loan interest rate, including your income, your credits core, the loan amount, the down payment, the age of the car, and your loan's term (the length of the loan). A high debt-to-income ratio, poor credit score, or choosing an older vehicle at your Montgomery dealership 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 bill is and the more you spend over the term of your loan. Just one or two percent more could mean you spend hundreds more on interest.
How Can I Get a Lower Car Loan Rate in Montgomery, AL?
With tools like our Interest Rate Estimator, you can get a feel for what your rate could be before having to apply for a car loan in Montgomery, AL. If you've put in your information and aren't liking the percentage you see, how can you lower?
The loan term is one thing you can control. Most Montgomery auto 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 have a lower monthly payment. However, a longer term also tends to come with a higher interest rate. If you can handle a higher monthly payment, it's wise to choose a shorter term. The Auto Payment Calculator shows what your monthly payment might be with different interest rates and terms to help you decide what might work for your budget.
If you have less than ideal credit, raising your score could lower your interest rate. Our Guide to Better Credit for Auto Financing can help you understand where your credit score comes from 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 get a lower rate. While lenders will use the same information, you won't receive the same interest rate from each one. It's important to shop around and compare offers to find the best car loan rate in Montgomery, 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 a better one might be waiting just around the corner. Keep in mind 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.
Discover the Best Auto Loan Rates in Montgomery, AL with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Montgomery, AL regardless of what type of vehicle you're buying or your credit score. We'll present you with up to four loans at once so you can get the right deal. Fill out our secure online application, choose the loan that looks best to you, and head down to a dealer in Montgomery to purchase a new ride. Don't wait to apply and check today's lowest interest rates!