How Are Norwich, CT Car Loan Rates Determined?
A handful of factors affect your Connecticut auto 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, low credit score, or purchasing an older car from a dealer in Norwich 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 over your loan’s term. A difference of just one or two percent could mean you spend hundreds more on interest.
Can I Lower My Car Loan Rate in Norwich, CT?
Using tools like our Interest Rate Estimator can help you get an idea of what your rate might look like before having to apply for a car loan in Norwich, CT. If you've supplied your information and aren't happy with the percentage you see, how can you lower?
The loan term is one factor you have a lot of control over. Most car loans in Norwich have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Many borrowers are drawn in by longer terms because they typically have a lower monthly payment. But longer terms are also likely to come with higher interest rates. If you can afford a higher monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator shows what your monthly payments might look like with different terms and interest rates to help you see what might be affordable.
If you have less than stellar credit, increasing your score could bring your interest rate down. Our Guide to Better Credit for Auto Financing will help you understand what goes into a credit score and which steps you can take today to bring it up quickly. Your credit score will take some effort and time to build, but it'll be worth it once you see those lower Connecticut auto loan rates.
Waiting to find the right lender can also help you get a lower rate. While lenders will consider 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 Norwich, CT — even without the best credit or income. You don't want to choose the first offer you get because there could be a better one right around the corner. Don't forget some lenders allow for negotiation, so you can take an offer from one lender to another to see if they're willing to beat the interest rate.
See the Best Auto Loan Rates in Norwich, CT with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Norwich, CT 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. Simply complete our secure online application, pick the loan that works best for you, and visit your Norwich dealer to purchase a new car. Apply now to see today's lowest interest rates!