How Are Car Loan Rates in Phoenix, AZ Calculated?
A handful of factors affect your Arizona auto loan rate, including the loan amount, your credit score, your income, the down payment, the age of the car, and your loan's term (the length of the loan). A low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Phoenix dealer 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 your loan’s term. Even a rate one or two percent higher could mean you spend hundreds more on interest.
How Do I Lower My Auto Loan Rate in Phoenix, AZ?
With tools like our Interest Rate Estimator, you can get a feel for what your rate might look like before having to apply for a car loan in Phoenix, AZ. If you've supplied your information and don't like the percentage you see, what steps can you take to lower it?
The loan term is one element you have total control over. Most Phoenix car loans have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Longer terms will tempt many borrowers because the monthly payment is usually lower. However, a longer term also tends to come with a higher interest rate. If your budget allows for a higher monthly payment, it's better 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 see what you can afford.
If you have less than ideal credit, boosting your score could bring your interest rate down. 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. It may take some effort and time to increase your credit score, but it's worth it for those lower Arizona auto loan rates.
Taking the time to hunt down 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 Phoenix, AZ — even without the best credit or income. You shouldn't automatically choose the first offer you get because a better one could be right around the corner. Don't forget 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 Phoenix, AZ
myAutoloan is here to help you get the lowest auto loan rates in Phoenix, AZ no matter what type of car you're buying or your credit score. We'll present you with up to four loans at once so you can find the right 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 see today's lowest interest rates!