How Are Los Gatos, CA Auto Loan Rates Determined?
Various factors impact 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, low credit score, or purchasing an older car from a dealer in Los Gatos could lead to a higher interest rate. But why worry about a high interest rate? The higher your interest rate is, 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 on interest.
How Do I Lower My Auto Loan Rate in Los Gatos, CA?
Online tools like our Interest Rate Estimator will give you an idea of what your rate might look like before you complete an application for a car loan in Los Gatos, CA. If you've put in your information and aren't liking the percentage you see, what steps can you take to lower it?
The loan term is one aspect you have total control over. Most Los Gatos car loans have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). 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 better to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment based on different interest rates and terms to help you decide what you can afford.
If you have less than ideal credit, improving 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 time and work to better your credit score, but it's worth it to get those lower California car loan rates.
Taking some time to find the right lender can also help you snag a lower rate. While lenders will use the same information, you won't see the same interest rate from each one. Shopping around and comparing offers will help you find the best auto loan rate in Los Gatos, CA — even if you don't have the highest income or best credit. You don't want to go with the first offer you receive 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.
See the Best Auto Loan Rates in Los Gatos, CA with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Los Gatos, CA no matter what type of car you're buying or your credit score. You can look at up to four loans at once so you can find the perfect loan. Complete our secure online application, choose the loan that looks best to you, and head down to a dealer in Los Gatos to purchase a new ride. Apply today to see the current lowest interest rates!