How Are Car Loan Rates in Grand Junction, CO Calculated?
A handful of factors contribute to your Colorado auto loan interest rate, including your credit score, the amount of the loan, your income, the down payment, your loan's term (the length of the loan), and the car's age. A high debt-to-income ratio, poor credit score, or choosing an older vehicle at your Grand Junction dealership could mean a higher interest rate. But why is a high interest rate bad? The higher your interest rate is, the higher your monthly payment is and the more you spend in total. A difference of just one or two percent could mean you spend hundreds more on interest.
Is There a Way to Lower My Grand Junction Car Loan Rate?
You can use tools like our Interest Rate Estimator to get an idea of what your rate might be before you start applying for auto loans in Grand Junction, CO. If you've put in your information and don't like the percentage you see, what can be done to lower it?
The loan term is one thing you can change on your own. Most Grand Junction auto loans have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Longer terms attract many borrowers because they usually have a lower monthly payment. But longer terms tend to also come with higher interest rates. If your budget allows for a higher monthly payment, it's better to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment based on different interest rates and terms to help you see what you might be able to afford.
If your credit is less than stellar, raising your score could lower your interest rate. Our Guide to Better Credit for Auto Financing can help you understand where your credit score comes from 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 for those lower Colorado auto loan rates.
Putting effort into finding the right lender can also help you get a lower rate. While lenders will look at the same information, 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 Grand Junction, CO — even without a high income or credit score. You don't want to go with the first offer you receive because a better one might be waiting just around the corner. And, some lenders are open to negotiation, so you can take an offer from one lender to the other to see if they can beat the interest rate.
See the Best Auto Loan Rates in Grand Junction, CO with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Grand Junction, CO 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 get the right deal. Fill out our secure online application, select the best loan for you, and head down to a dealer in Grand Junction to purchase a new ride. Apply now to check today's lowest interest rates!