What Determines Your Auto Loan Rate in Steamboat Springs, CO?
Several factors influence your Colorado car loan rate, including your credit score, the amount of the loan, your income, the down payment, the age of the car, 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 Steamboat Springs dealership could lead to a higher interest rate. But why is a high interest rate bad? The higher your interest rate gets, the higher your monthly payment becomes and the more you spend over the life of your loan. A difference of just one or two percent could mean spending hundreds more overall.
Is There a Way to Lower My Steamboat Springs Car Loan Rate?
You can use tools like our Interest Rate Estimator to get a feel for what your rate could be before you complete an application for a car loan in Steamboat Springs, CO. If you've plugged in your information and aren't happy with the percentage you see, what steps can you take to lower it?
The loan term is one factor you can control. Most Steamboat Springs car loans are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Longer terms attract many borrowers because they typically 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 estimates what your monthly payment could be based on different interest rates and terms to help you determine what might work for your budget.
If your credit is far from great, boosting your score could decrease your interest rate. Our Guide to Better Credit for Auto Financing can help you understand where your credit score comes from and how you can quickly bring it up. Your credit score will take some effort and time to build, 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 will look at the same information, you won't see the same interest rate from each one. Shopping around and comparing offers will help you find the best auto loan rate in Steamboat Springs, CO — even if you don't have the best credit or income. You shouldn't automatically choose the first offer you get because there could be a better one right around the corner. And, some lenders allow for negotiation, 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 Steamboat Springs, CO
myAutoloan is committed to helping you find the lowest auto loan rates in Steamboat Springs, CO no matter your credit score or the type of car you're buying. You can look at up to four loans at once so you can find the best deal. Fill out our simple and secure online application, choose 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!