What Determines Your Auto Loan Rate in Modesto, CA?
Many factors contribute to your California car loan interest rate, including your credit score, the amount of the loan, your income, 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 Modesto dealership could lead to a higher interest rate. But why worry about a high interest rate? The higher your interest rate is, the higher your monthly payment is and the more you spend in total. A difference of just one or two percent could mean spending hundreds more on interest.
How Can I Get a Lower Car Loan Rate in Modesto, CA?
With tools like our Interest Rate Estimator, you can get a feel for what your rate could be before having to apply for a car loan in Modesto, CA. If you've plugged in your information and don't like the percentage you see, what can be done to lower it?
The loan term is one factor you can control. Most Modesto 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 the monthly payment is usually lower. However, longer terms also tend to come with higher interest rates. If you can handle a higher monthly payment, it's wise to choose a shorter term. The Auto Payment Calculator shows what your monthly payments might look like depending on different interest rates and terms to help you see what might work for your budget.
If you have less than stellar credit, raising 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 today to bring it up quickly. Your credit score may take some more time and work, but it's all worth it for getting those lower auto loan rates in California.
Taking some time to find the right lender can also help you secure a lower rate. While lenders will use the same information, you won't receive the same interest rate from each one. It's important to shop around and compare offers to find the best car loan rate in Modesto, CA — even without the best credit or income. You shouldn't automatically choose the first offer you get because a better one could be right around the corner. Keep in mind 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.
See the Best Auto Loan Rates in Modesto, CA with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Modesto, 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. Simply complete our secure online application, choose the loan that looks best to you, and visit your Modesto dealer to purchase a new car. Don't wait to apply and check today's lowest interest rates!