How Are Dover, DE Auto Loan Rates Determined?
A handful of factors impact your Delaware car loan interest rate, including the loan amount, your credit score, your income, the car's age, the down payment, and the length of the loan (your loan's term). A poor credit score, low income, or buying an older vehicle from a dealer in Dover could lead to a higher interest rate. But is a high interest rate so bad? The higher your interest rate, the higher your monthly payment is and the more you spend over the term of your loan. A difference of one or two percent might not seem like much, but it could mean you spend hundreds more on interest.
Is There a Way to Lower My Dover Car Loan Rate?
With tools like our Interest Rate Estimator, you can get an idea of what your rate might be before you complete an application for a car loan in Dover, DE. If you've filled out your information and don't like the percentage you see, what can you do to lower it?
The loan term is one factor you can control. Most car loans in Dover have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Longer terms will tempt many borrowers because they typically have a lower monthly payment. However, longer terms also tend to come with higher interest rates. If you can handle a higher monthly payment, it's smart 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 might work for your budget.
If your credit is far from great, increasing 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 the steps you can take now to raise it quickly. It may take some effort and time to increase your credit score, but it's all worth it for getting those lower auto loan rates in Delaware.
Waiting to find the right lender can also help you get a lower rate. While lenders will consider the same information, you won't receive the same interest rate from each one. You need to compare offers and shop around for the best auto loan rate in Dover, DE — even without a high income or credit score. You shouldn't automatically choose the first offer you get because a better one could be right around the corner. Don't forget some lenders will negotiate, so you can take an offer from one lender to the other to see if they can beat the interest rate.
Find the Best Auto Loan Rates in Dover, DE with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Dover, DE 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 find the perfect loan. Fill out our secure online application, pick the loan that works best for you, and visit your Dover dealer to purchase a new car. Don't wait to apply and check today's lowest interest rates!