How Are Prescott, AZ Car Loan Rates Determined?
A handful of factors impact your Arizona car loan interest rate, including your income, your credits core, the loan amount, the age of the car, the down payment, 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 Prescott dealer could result in a higher interest rate. But why worry about a high interest rate? The higher your interest rate gets, the more you pay each month and the more you spend over the term of your loan. A difference of one or two percent might not seem like much, but it could mean spending hundreds more overall.
How Can I Get a Lower Car Loan Rate in Prescott, AZ?
Online tools like our Interest Rate Estimator will give you an idea of what your rate might be before you start applying for auto loans in Prescott, AZ. 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 aspect you can change on your own. Most auto loans in Prescott 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 you can afford a higher monthly payment, it's smart to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment with different terms and interest rates to help you figure out what you can afford.
If your credit is far from great, increasing your score could 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. It may take some effort and time to increase your credit score, but it'll be worth it once you see those lower Arizona auto loan rates.
Taking some time to find the right lender can also help you snag a lower rate. While lenders take the same information into consideration, you won't receive the same interest rate from each one. You need to shop around and compare offers to find the best auto loan rate in Prescott, AZ — even without the best credit or income. You don't want to choose the first offer you get because there could be a better one right around the corner. Don't forget some lenders allow 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 Prescott, AZ with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Prescott, AZ no matter your credit score or the type of car you're buying. We'll present you with up to four loans at once so you can find the best deal. Fill out our simple and secure online application, select the best loan for you, and head to your Prescott dealer to purchase a new ride. Apply now to check today's lowest interest rates!