What Determines Your Auto Loan Rate in Tempe, AZ?
Many factors affect your Arizona car loan interest rate, Including your credit score, your income, the amount of the loan, the age of the car, the down payment, 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 Tempe dealership might lead to a higher interest rate. But why worry about a high interest rate? The higher of an interest rate you have, the higher your monthly payment becomes 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 Can I Get a Lower Car Loan Rate in Tempe, AZ?
Online tools like our Interest Rate Estimator will give you an idea of what your rate might be before having to apply for a car loan in Tempe, AZ. If you've put in your information and don't like the percentage you see, what can you do to lower it?
The loan term is one thing you can control. Most Tempe auto loans have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Many borrowers take longer terms because they typically have a lower monthly payment. However, a longer term also tends to come with a higher interest rate. If you can afford a bigger monthly payment, it's better to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment based on different interest rates and terms to help you see what might work for your budget.
If your credit is less than stellar, boosting your score could help lower your interest rate. Our Guide to Better Credit for Auto Financing can help you understand where your credit score comes from and the steps you can take now to raise it quickly. It may take some time and work to better your credit score, but it's all worth it for getting those lower auto loan rates in Arizona.
Waiting to find the right lender can also help you snag a lower rate. While lenders will use the same information, each one might give you a different interest rate. Shopping around and comparing offers will help you find the best auto loan rate in Tempe, AZ — even without a high income or credit score. You don't want to choose the first offer you get because a better one could be right around the corner. And, 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 Tempe, AZ with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Tempe, AZ regardless of your credit score and the type of car you're buying. You can look at up to four loans at once so you can find the best deal. Simply complete our secure online application, choose the best loan for you, and head down to a dealer in Tempe to purchase a new ride. Apply now to see today's lowest interest rates!