How Are Colorado Springs, CO Car Loan Rates Determined?
Many factors influence your Colorado 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 low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Colorado Springs dealer might lead to a higher interest rate. But why is a high interest rate bad? The higher your interest rate, the more you pay each month and the more you spend over the life of your loan. A difference of one or two percent might not seem like much, but it could mean spending hundreds more on interest.
Is There a Way to Lower My Colorado Springs Car Loan Rate?
With tools like our Interest Rate Estimator, you can get an idea of what your rate might be before you begin applying for auto loans in Colorado Springs, CO. If you've supplied your information and don't like the percentage you see, what can be done to lower it?
The loan term is one factor you have total control over. Most auto loans in Colorado Springs 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. However, longer terms also tend to come with higher interest rates. If you can afford a bigger monthly payment, it's better to choose a shorter term. The Auto Payment Calculator shows what your monthly payment might be with different interest rates and terms to help you figure out what you might be able to afford.
If you have less than ideal credit, boosting your score could help lower your interest rate. Our Guide to Better Credit for Auto Financing walks you through 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 Colorado car 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, you'll likely receive a different interest rate from each one. You need to shop around and compare offers to find the best auto loan rate in Colorado Springs, CO — even if you don't have the highest income or best credit. 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 are open to negotiation, so you can take your offer from one lender to another to see if they're willing to give an even lower rate.
Discover the Best Auto Loan Rates in Colorado Springs, CO with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Colorado Springs, CO 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. Fill out our simple and secure online application, select the best loan for you, and purchase a new ride from your {City}} dealer. Don't wait to apply and check today's lowest interest rates!