How Are Car Loan Rates in Merced, CA Calculated?
Many factors affect your California auto loan rate, including your income, your credits core, the loan amount, the age of the car, the down payment, 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 Merced could result in a higher interest rate. But why worry about a high interest rate? The higher your interest rate gets, the higher your monthly payment is and the more you spend over your loan’s term. Even a rate one or two percent higher could mean you spend hundreds more on interest.
Can I Lower My Car Loan Rate in Merced, CA?
Using tools like our Interest Rate Estimator can help you get an idea of what your rate might be before you begin applying for auto loans in Merced, CA. If you've supplied your information and are unhappy with the percentage you see, what can you do to lower it?
The loan term is one factor you have total control over. Most Merced auto loans are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Many borrowers take longer terms because they typically have a lower monthly payment. However, a longer term also tends to come with a higher interest rate. 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 depending on different interest rates and terms to help you decide what might be affordable.
If your credit is less than stellar, 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 which steps you can take today to bring it up quickly. Your credit score may take some more time and work, but it's worth it to get those lower California car loan rates.
Waiting to find the right lender can also help you snag a lower rate. While lenders will look at the same information, 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 Merced, 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. Plus, some lenders leave room for negotiation, so you can take an offer from one lender to the other to see if they can beat the interest rate.
Discover the Best Auto Loan Rates in Merced, CA with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Merced, CA no matter your credit score or the type of car you're buying. You can see up to four loans at once so you can find the right deal. Simply complete our secure online application, pick the loan that works best for you, and head to your Merced dealer to purchase a new ride. Don't wait to apply and check today's lowest interest rates!