What Determines Your Auto Loan Rate in Covina, CA?
Various factors affect your California car loan rate, Including your credit score, your income, the amount of the loan, the age of the car, the down payment, and your loan's term (the length of the loan). A high debt-to-income ratio, poor credit score, or choosing an older vehicle at your Covina dealership could result in a higher interest rate. But is a high interest rate so bad? The higher your interest rate, the more you pay each month and the more you spend over the life of your loan. Just one or two percent more could mean spending hundreds more on interest.
Is There a Way to Lower My Covina Car Loan Rate?
Using tools like our Interest Rate Estimator can help you get a feel for what your rate might look like before you begin applying for auto loans in Covina, CA. If you've plugged in your information and don't like the percentage you see, how can you lower?
The loan term is one element you can control. Most Covina car loans are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Many borrowers are drawn in by longer terms because they usually mean a lower monthly payment. But longer terms are also likely to 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 what your monthly payment might be with different interest rates and terms to help you figure out what you can afford.
If your credit is far from great, boosting your score could decrease your interest rate. Our Guide to Better Credit for Auto Financing can help you understand where your credit score comes from and the steps you can take now to raise it quickly. It may take some effort and time to increase your credit score, but it's worth it for those lower California 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, you won't receive the same interest rate from each one. You need to compare offers and shop around for the best auto loan rate in Covina, CA — 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. And, 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 Covina, CA with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Covina, CA no matter what type of car you're buying or your credit score. We'll present you with up to four loans at once so you can get the right deal. Simply complete our secure online application, select the best loan for you, and visit your Covina dealer to purchase a new car. Apply now to see today's lowest interest rates!