How Are Costa Mesa, CA Car Loan Rates Determined?
Many factors contribute to your California auto loan interest 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, poor credit score, or choosing an older vehicle at your Costa Mesa dealership could lead to a higher interest rate. But why is a high interest rate bad? The higher of an interest rate you have, the more you pay each month and the more you spend over the term of your loan. Just one or two percent more could mean you spend hundreds more on interest.
How Do I Get a Lower Car Loan Interest in Costa Mesa, CA?
Using tools like our Interest Rate Estimator can help you get a feel for what your rate might look like before you start applying for auto loans in Costa Mesa, CA. If you've plugged in your information and aren't happy with the percentage you see, what can you do to lower it?
The loan term is one thing you can change on your own. Most auto loans in Costa Mesa have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Longer terms will tempt many borrowers because they usually have a lower monthly payment. However, longer terms also tend to come with higher interest rates. If your budget allows for a higher monthly payment, it's wise to choose a shorter term. The Auto Payment Calculator estimates what your monthly payment could be with different terms and interest rates to help you determine what you can afford.
If you have less than ideal credit, boosting 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 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 the time to hunt down 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 Costa Mesa, CA — even if you don't have the highest income or best credit. 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 your offer from one lender to another to see if they're willing to give an even lower rate.
Discover the Best Auto Loan Rates in Costa Mesa, CA with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Costa Mesa, CA regardless of what type of vehicle 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 visit your Costa Mesa dealer to purchase a new car. Apply now to see today's lowest interest rates!