How Are Pasadena, CA Car Loan Rates Determined?
Many factors influence your California auto loan interest rate, including the loan amount, your credit score, your income, the car's age, the down payment, and the length of the loan (your loan's term). A low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Pasadena dealer could 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 higher your monthly bill is and the more you spend in total. A difference of just one or two percent could mean spending hundreds more overall.
How Do I Get a Lower Car Loan Interest in Pasadena, CA?
Online tools like our Interest Rate Estimator will give you an idea of what your rate might look like before you begin applying for auto loans in Pasadena, CA. If you've plugged in your information and don't like the percentage you see, what can you do to lower it?
The loan term is one thing you have total control over. Most Pasadena car loans have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). 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 smart to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment with different interest rates and terms to help you figure out what you can afford.
If your credit is far from great, boosting your score could help lower your interest rate. Use our Guide to Better Credit for Auto Financing to better understand what determines your credit score and which steps you can take to bring it up fast. It may take some effort and time to increase your credit score, but it'll be worth it once you see those lower California auto loan rates.
Taking some time to find 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 Pasadena, CA — even if you don't have the highest income or best credit. You shouldn't go with the first offer you receive because a better one could be right around the corner. Don't forget some lenders leave room for negotiation, so you can take your offer from one lender to another to see if they're willing to give an even lower rate.
Use myAutoloan to Check the Best Auto Loan Rates in Pasadena, CA
myAutoloan is committed to helping you find the lowest auto loan rates in Pasadena, 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 best deal. Complete our secure online application, choose the loan that looks best to you, and head down to a dealer in Pasadena to purchase a new ride. Don't wait to apply and check today's lowest interest rates!