How Are Bakersfield, CA Car Loan Rates Determined?
Many factors contribute to your California car loan rate, including your credit score, the amount of the loan, your income, the car's age, the down payment, and the length of the loan (your loan's term). A high debt-to-income ratio, low credit score, or purchasing an older car from a dealer in Bakersfield could result in a higher interest rate. But why is a high interest rate bad? The higher of an interest rate you have, the higher your monthly payment becomes 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 Do I Get a Lower Car Loan Interest in Bakersfield, CA?
With tools like our Interest Rate Estimator, you can get a feel for what your rate could be before you complete an application for a car loan in Bakersfield, CA. If you've filled out 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 change on your own. Most car loans in Bakersfield have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Many borrowers are drawn in by longer terms because they usually have a lower monthly payment. But longer terms tend to also come with higher interest rates. If your budget allows for a higher monthly payment, it's smart to choose a shorter term. The Auto Payment Calculator estimates what your monthly payment could be based on different interest rates and terms to help you determine what you might be able to afford.
If you have less than ideal credit, boosting your score could decrease your interest rate. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and which steps you can take to bring it up fast. It may take some effort and time to increase your credit score, but it's all worth it for getting those lower auto loan rates in California.
Taking some time to find the right lender can also help you achieve a lower rate. While lenders will look at 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 Bakersfield, CA — even if you don't have the highest income or best credit. You shouldn't automatically choose the first offer you get because there could be a better one right around the corner. And, 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 Bakersfield, CA with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Bakersfield, CA regardless of your credit score and the type of car you're buying. We'll present you with up to four loans at once so you can find the perfect loan. Simply complete our secure online application, select the best loan for you, and visit your Bakersfield dealer to purchase a new car. Don't wait to apply and check today's lowest interest rates!