How Are Fremont, CA Auto Loan Rates Determined?
Several factors contribute to your California auto loan rate, including the loan amount, your credit score, your income, the down payment, the age of the car, 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 Fremont dealership might lead to a higher interest rate. But what's so bad about a high interest rate? The higher of an interest rate you have, the more you pay each month and the more you spend over the life of your loan. A difference of just one or two percent could mean spending hundreds more overall.
Is There a Way to Lower My Fremont Car Loan Rate?
With tools like our Interest Rate Estimator, you can get a feel for what your rate might look like before you start applying for auto loans in Fremont, CA. If you've put in your information and aren't liking the percentage you see, what can be done to lower it?
The loan term is one thing you have total control over. Most Fremont auto loans have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Longer terms will tempt many borrowers because they usually mean a lower monthly payment. However, a longer term also tends to come with a higher interest rate. If you can handle a higher monthly payment, it's smart to choose a shorter term. The Auto Payment Calculator shows what your monthly payment might be based on different interest rates and terms to help you determine what you can afford.
If your credit is far from great, increasing your score could decrease your interest rate. 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 time and work to better your credit score, but it's worth it for those lower California auto loan rates.
Taking the time to hunt down the right lender can also help you secure a lower rate. While lenders will look at the same information, each one might give you a different interest rate. It's important to shop around and compare offers to find the best car loan rate in Fremont, 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. 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 Fremont, CA with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Fremont, CA no matter what type of car you're buying or your credit score. You can see up to four loans at once so you can get the right deal. Fill out our secure online application, select the best loan for you, and head to your Fremont dealer to purchase a new ride. Don't wait to apply and check today's lowest interest rates!