How Are Car Loan Rates in Valley, AL Calculated?
Several factors contribute to your Alabama auto loan 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 Valley dealership could lead to a higher interest rate. But is a high interest rate so bad? The higher your interest rate gets, the more you pay each month and the more you spend over the life 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 Valley, AL?
Online tools like our Interest Rate Estimator will give you an idea of what your rate might be before you begin applying for auto loans in Valley, AL. If you've supplied 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 control. Most Valley car loans have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Many borrowers are drawn in by longer terms because the monthly payment is usually lower. However, longer terms also tend to come with higher interest rates. If your budget allows for a higher monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator shows what your monthly payment might be based on different interest rates and terms to help you decide what might work for your budget.
If your credit is less than stellar, increasing your score could bring your interest rate down. 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 will take some effort and time to build, but it'll be worth it once you see those lower Alabama auto loan rates.
Putting effort into finding the right lender can also help you get a lower rate. While lenders will look at the same information, you'll likely receive a different interest rate from each one. You need to compare offers and shop around for the best auto loan rate in Valley, AL — even without a high income or credit score. You shouldn't go with the first offer you receive because there could be a better one right around the corner. Plus, some lenders will negotiate, so you can take an offer from one lender to the next to see if they'll beat the interest rate.
Find the Best Auto Loan Rates in Valley, AL with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Valley, AL no matter your credit score or the type of car you're buying. We'll show you up to four loans at once so you can get the right deal. Fill out our simple and secure online application, choose the loan that looks best to you, and head to your Valley dealer to purchase a new ride. Apply today to see the current lowest interest rates!