What Determines Your Auto Loan Rate in Redwood City, CA?
Several factors impact your California car loan rate, including your credit score, the amount of the loan, your income, the car's age, the down payment, and the length of the loan (your loan's term). A high debt-to-income ratio, poor credit score, or choosing an older vehicle at your Redwood City dealership might 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 payment becomes and the more you spend over the term of your loan. Even a rate one or two percent higher could mean you spend hundreds more on interest.
Is There a Way to Lower My Redwood City Car Loan Rate?
With tools like our Interest Rate Estimator, you can get an idea of what your rate might be before you complete an application for a car loan in Redwood City, 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 thing you have a lot of control over. Most auto loans in Redwood City have terms in 12-month increments between 24 months (2 years) and 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 wise to choose a shorter term. The Auto Payment Calculator estimates what your monthly payment could be based 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 lower 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 to bring it up fast. It may take some effort and time to increase your credit score, but it's worth it for those lower California auto loan rates.
Taking some time to find the right lender can also help you snag a lower rate. While lenders take the same information into consideration, 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 Redwood City, CA — even if you don't have the highest income or best credit. You shouldn't automatically choose the first offer you get because there could be a better one right around the corner. Keep in mind some lenders will negotiate, so you can take an offer from one lender to another to see if they're willing to beat the interest rate.
Find the Best Auto Loan Rates in Redwood City, CA with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Redwood City, CA regardless of your credit score and the type of car you're buying. You can see up to four loans at once so you can find the perfect loan. Fill out our secure online application, choose the best loan for you, and head down to a dealer in Redwood City to purchase a new ride. Don't wait to apply and check today's lowest interest rates!