How Are Berkeley, CA Car Loan Rates Determined?
Various factors affect your California 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 low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Berkeley dealer could result in 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 term of your loan. Even a rate one or two percent higher could mean spending hundreds more on interest.
How Can I Get a Lower Car Loan Rate in Berkeley, CA?
Online tools like our Interest Rate Estimator will give you an idea of what your rate might look like before having to apply for a car loan in Berkeley, CA. If you've filled out your information and are unhappy with the percentage you see, how can you lower?
The loan term is one factor you can change on your own. Most Berkeley car 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, choosing a shorter term is a good move. The Auto Payment Calculator estimates what your monthly payment could be with different interest rates and terms to help you determine what you might be able to afford.
If you have less than ideal credit, increasing 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 which steps you can take today to bring it up quickly. Your credit score may take some more time and work, but it's all worth it for getting those lower auto loan rates in California.
Waiting 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 Berkeley, CA — even without a high income or credit score. You don't want to go with the first offer you receive because a better one might be waiting just around the corner. Don't forget some lenders are open to negotiation, so you can take an offer from one lender to another to see if they're willing to beat the interest rate.
Discover the Best Auto Loan Rates in Berkeley, CA with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Berkeley, CA no matter what type of car you're buying or your credit score. We'll show you up to four loans at once so you can get the right deal. Simply complete our secure online application, choose the best loan for you, and head to your Berkeley dealer to purchase a new ride. Apply now to see today's lowest interest rates!