What Determines Your Auto Loan Rate in Santa Barbara, CA?
Several factors impact your California auto loan rate, including the loan amount, your credit score, your income, the down payment, your loan's term (the length of the loan), and the car's age. A poor credit score, low income, or buying an older vehicle from a dealer in Santa Barbara could mean a higher interest rate. But why is a high interest rate bad? The higher your interest rate gets, the higher your monthly bill is and the more you spend over the term of your loan. Just one or two percent more could mean you spend hundreds more on interest.
Can I Lower My Car Loan Rate in Santa Barbara, CA?
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 Santa Barbara, CA. If you've plugged in your information and are unhappy with the percentage you see, what steps can you take to lower it?
The loan term is one aspect you can change on your own. Most Santa Barbara auto loans have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Many borrowers are drawn in by longer terms because they usually mean a lower monthly payment. But longer terms tend to also come with higher interest rates. If you can afford a bigger monthly payment, it's wise to choose a shorter term. The Auto Payment Calculator shows what your monthly payment might be based on different interest rates and terms to help you determine what might work for your budget.
If you have less than ideal credit, increasing 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 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.
Taking some time to find the right lender can also help you snag a lower rate. While lenders will consider 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 Santa Barbara, CA — even if you don't have the best credit or income. You don't want to go with the first offer you receive because there might be a better one just around the corner. Don't forget some lenders will negotiate, so you can take your offer from one lender to another to see if they're willing to give an even lower rate.
See the Best Auto Loan Rates in Santa Barbara, CA with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Santa Barbara, CA regardless of your credit score and the type of car you're buying. We'll show you up to four loans at once so you can find the right deal. Complete our secure online application, choose the best loan for you, and visit your Santa Barbara dealer to purchase a new car. Apply today to see the current lowest interest rates!