How Are Car Loan Rates in Melbourne, AR Calculated?
A handful of factors contribute to your Arkansas auto loan interest 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 low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Melbourne dealer could mean 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 the term of your loan. A difference of just one or two percent could mean you spend hundreds more on interest.
Can I Lower My Car Loan Rate in Melbourne, AR?
Using tools like our Interest Rate Estimator can help you get an idea of what your rate might be before you complete an application for a car loan in Melbourne, AR. If you've plugged in your information and aren't liking the percentage you see, what can be done to lower it?
The loan term is one factor you can control. Most Melbourne auto loans are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Longer terms attract many borrowers because they usually mean a lower monthly payment. 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 payments might look like depending on different interest rates and terms to help you figure out what you can afford.
If your credit is far from great, increasing your score could bring your interest rate down. Our Guide to Better Credit for Auto Financing will help you understand what goes into a credit score and which steps you can take today to bring it up quickly. Your credit score may take some more time and work, but it's worth it to get those lower Arkansas car 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, each one might give you a different interest rate. You need to compare offers and shop around for the best auto loan rate in Melbourne, AR — even if you don't have the best credit or income. You shouldn't go with the first offer you receive because there could be a better one right around the corner. Keep in mind 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 Melbourne, AR with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Melbourne, 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. Fill out our simple and secure online application, select the best loan for you, and head to your Melbourne dealer to purchase a new ride. Apply today to see the current lowest interest rates!