How Are Littleton, CO Auto Loan Rates Determined?
A handful of factors contribute to your Colorado auto loan interest rate, Including your credit score, your income, the amount of the loan, the age of the car, the down payment, and your loan's term (the length of the loan). A high debt-to-income ratio, poor credit score, or choosing an older vehicle at your Littleton dealership could lead to a higher interest rate. But what's so bad about a high interest rate? The higher your interest rate is, the higher your monthly payment is and the more you spend in total. A difference of one or two percent might not seem like much, but it could mean you spend hundreds more on interest.
How Do I Get a Lower Car Loan Interest in Littleton, CO?
Using tools like our Interest Rate Estimator can help you get a feel for what your rate might look like before you complete an application for a car loan in Littleton, CO. If you've plugged in your information and don't like the percentage you see, how can you lower?
The loan term is one factor you have total control over. Most Littleton car loans are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Many borrowers are drawn in by longer terms because they usually mean a lower monthly payment. But longer terms are also likely to come with higher interest rates. If you can afford 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 determine what might work for your budget.
If your credit is less than stellar, boosting your score could decrease your interest rate. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and how you can quickly bring it up. Your credit score will take some effort and time to build, but it's all worth it for getting those lower auto loan rates in Colorado.
Taking the time to hunt down the right lender can also help you achieve a lower rate. While lenders will look at the same information, each one might give you a different interest rate. You need to compare offers and shop around for the best auto loan rate in Littleton, CO — even if you don't have the highest income or best credit. You shouldn't automatically choose the first offer you get because there could be a better one right around the corner. Plus, some lenders leave room for negotiation, 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 Littleton, CO with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Littleton, CO regardless of what type of vehicle you're buying or your credit score. We'll present you with up to four loans at once so you can find the right deal. Simply complete our secure online application, choose the best loan for you, and head down to a dealer in Littleton to purchase a new ride. Apply now to see today's lowest interest rates!