How Are Denver, CO Car Loan Rates Determined?
Several factors impact your Colorado auto loan interest 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 low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Denver dealer could result in 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 in total. Just one or two percent more could mean you spend hundreds more on interest.
Can I Lower My Car Loan Rate in Denver, CO?
Online tools like our Interest Rate Estimator will give you a feel for what your rate might look like before you start applying for auto loans in Denver, CO. If you've filled out 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 control. Most auto loans in Denver have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Longer terms attract many borrowers because they typically 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, it's better to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment with different terms and interest rates to help you see what you might be able to afford.
If your credit is far from great, increasing your score could bring your interest rate down. 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. Your credit score may take some more time and work, but it's worth it to get those lower Colorado car loan rates.
Putting effort into finding the right lender can also help you secure a lower rate. While lenders take the same information into consideration, each one might give you a different interest rate. You need to compare offers and shop around for the best auto loan rate in Denver, CO — even without a high income or credit score. You shouldn't automatically choose the first offer you get because there might be a better one just around the corner. Plus, some lenders will negotiate, 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 Denver, CO
myAutoloan wants to help you find the lowest auto loan rates in Denver, CO no matter your credit score or the type of car you're buying. We'll show you 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 to your Denver dealer to purchase a new ride. Apply now to see today's lowest interest rates!