How Are Sacramento, CA Car Loan Rates Determined?
Several factors affect your California auto loan rate, including your income, your credits core, the loan amount, the car's age, the down payment, and the length of the loan (your loan's term). A high debt-to-income ratio, low credit score, or purchasing an older car from a dealer in Sacramento could result in a higher interest rate. But why is a high interest rate bad? The higher of an interest rate you have, the higher your monthly payment is and the more you spend over the term of your loan. Even a rate one or two percent higher could mean spending hundreds more on interest.
How Do I Lower My Auto Loan Rate in Sacramento, CA?
With tools like our Interest Rate Estimator, you can get a feel for what your rate could be before you complete an application for a car loan in Sacramento, CA. If you've supplied your information and are unhappy with the percentage you see, what can be done to lower it?
The loan term is one factor you have a lot of control over. Most auto loans in Sacramento have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Many borrowers take longer terms because they usually have a lower monthly payment. But longer terms are also likely to come with higher interest rates. If you can handle a higher monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator shows what your monthly payment might be depending on different interest rates and terms to help you decide what might be affordable.
If you have less than ideal credit, increasing 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 the steps you can take now to raise it quickly. It may take some time and work to better your credit score, but it'll be worth it once you see those lower California auto loan rates.
Waiting to find the right lender can also help you get a lower rate. While lenders will consider 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 Sacramento, 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 might be a better one just around the corner. Keep in mind some lenders allow for negotiation, so you can take an offer from one lender to the next to see if they'll beat the interest rate.
Use myAutoloan to Check the Best Auto Loan Rates in Sacramento, CA
myAutoloan is here to help you get the lowest auto loan rates in Sacramento, 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. Simply complete our secure online application, choose the best loan for you, and head to your Sacramento dealer to purchase a new ride. Apply today to see the current lowest interest rates!