What Determines Your Auto Loan Rate in Stockton, CA?
A handful of factors impact your California car 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 low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Stockton dealer 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 becomes and the more you spend over the term of your loan. A difference of one or two percent might not seem like much, but it could mean spending hundreds more overall.
How Do I Get a Lower Car Loan Interest in Stockton, CA?
Online tools like our Interest Rate Estimator will give you an idea of what your rate might look like before you complete an application for a car loan in Stockton, CA. If you've supplied your information and don't like the percentage you see, what can you do to lower it?
The loan term is one aspect you have a lot of control over. Most Stockton auto loans are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Many borrowers take longer terms because they usually mean a lower monthly payment. However, a longer term also tends to come with a higher interest rate. If you can afford a bigger monthly payment, it's better 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 figure out what might work for your budget.
If you have less than ideal credit, improving your score could bring your interest rate down. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and how you can quickly bring it up. It may take some time and work to better your credit score, but it's all worth it for getting those lower auto loan rates in California.
Waiting to find the right lender can also help you get a lower rate. While lenders will consider 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 Stockton, CA — even if you don't have the best credit or income. You shouldn't automatically choose the first offer you get because a better one might be waiting just around the corner. Keep in mind some lenders allow for negotiation, so you can take an offer from one lender to another to see if they're willing to beat the interest rate.
Discover the Best Auto Loan Rates in Stockton, CA with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Stockton, CA no matter your credit score or the type of car you're buying. We'll present you with up to four loans at once so you can find the right deal. Fill out our simple and secure online application, pick the loan that works best for you, and head to your Stockton dealer to purchase a new ride. Don't wait to apply and check today's lowest interest rates!