How Are Car Loan Rates in Gilroy, CA Calculated?
A handful of factors influence your California car loan rate, Including your credit score, your income, the amount of the loan, 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 Gilroy dealership could mean a higher interest rate. But why is a high interest rate bad? The higher your interest rate is, 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 spending hundreds more overall.
Can I Lower My Car Loan Rate in Gilroy, 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 Gilroy, CA. If you've filled out your information and are unhappy with the percentage you see, what can be done to lower it?
The loan term is one aspect you can control. Most auto loans in Gilroy are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Longer terms attract many borrowers because they typically have a lower monthly payment. But longer terms tend to also come with higher interest rates. If you can afford a bigger monthly payment, it's better 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 decide what you can afford.
If you have less than stellar credit, improving 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 how you can quickly bring it up. It may take some effort and time to increase your credit score, but it's worth it to get those lower California car loan rates.
Waiting to find the right lender can also help you secure a lower rate. While lenders take the same information into consideration, you won't see the same interest rate from each one. You need to shop around and compare offers to find the best auto loan rate in Gilroy, CA — even if you don't have the highest income or best credit. You shouldn't automatically choose the first offer you get because a better one might be waiting just around the corner. Plus, 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.
See the Best Auto Loan Rates in Gilroy, CA with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Gilroy, 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 find the right deal. Complete our secure online application, choose the best loan for you, and purchase a new ride from your {City}} dealer. Apply today to see the current lowest interest rates!