How Are Jonesboro, AR Car Loan Rates Determined?
A handful of factors influence your Arkansas auto loan interest rate, including the loan amount, your credit score, your income, the age of the car, the down payment, and your loan's term (the length of the loan). A high debt-to-income ratio, low credit score, or purchasing an older car from a dealer in Jonesboro might lead to a higher interest rate. But why is a high interest rate bad? The higher your interest rate, the higher your monthly payment becomes and the more you spend over your loan’s term. A difference of just one or two percent could mean you spend hundreds more on interest.
How Can I Get a Lower Car Loan Rate in Jonesboro, AR?
You can use tools like our Interest Rate Estimator to get an idea of what your rate might be before you start applying for auto loans in Jonesboro, AR. If you've supplied your information and don't like the percentage you see, what can be done to lower it?
The loan term is one element you can change on your own. Most auto loans in Jonesboro have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Longer terms attract many borrowers because they usually mean a lower monthly payment. But longer terms tend to also come with higher interest rates. If you can afford a bigger monthly payment, it's wise 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 might be able to afford.
If you have less than ideal credit, boosting 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 worth it for those lower Arkansas auto loan rates.
Taking some time to find the right lender can also help you get a lower rate. While lenders will consider the same information, each one might give you a different interest rate. You need to shop around and compare offers to find the best auto loan rate in Jonesboro, AR — even without the best credit or income. You shouldn't go with the first offer you receive because there might be a better one just around the corner. Keep in mind 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.
See the Best Auto Loan Rates in Jonesboro, AR with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Jonesboro, AR no matter your credit score or the type of car you're buying. You can look at up to four loans at once so you can find the perfect loan. Complete our secure online application, choose the best loan for you, and visit your Jonesboro dealer to purchase a new car. Apply now to check today's lowest interest rates!