How Are Orlando, FL Car Loan Rates Determined?
Several factors influence your Florida auto 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 low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Orlando dealer could result in a higher interest rate. But why is a high interest rate bad? The higher of an interest rate you have, the higher your monthly payment becomes and the more you spend over the life 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 Orlando 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 Orlando, FL. If you've filled out your information and don't like the percentage you see, what can be done to lower it?
The loan term is one element you can change on your own. Most Orlando car loans have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Longer terms attract many borrowers because the monthly payment is usually lower. But longer terms tend to also come with higher interest rates. If you can handle a higher monthly payment, it's wise 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 you can afford.
If you have less than ideal credit, boosting your score could bring your interest rate down. Use our Guide to Better Credit for Auto Financing to better understand what determines your credit score and how you can quickly bring it up. It may take some effort and time to increase your credit score, but it'll be worth it once you see those lower Florida auto loan rates.
Putting effort into finding the right lender can also help you get a lower rate. While lenders take the same information into consideration, each one might give you a different interest rate. It's important to shop around and compare offers to find the best car loan rate in Orlando, FL — even without 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. Plus, some lenders leave room for negotiation, 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 Orlando, FL with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Orlando, FL regardless of your credit score and the type of car you're buying. We'll show you up to four loans at once so you can find the right deal. Fill out our simple and secure online application, choose the best loan for you, and visit your Orlando dealer to purchase a new car. Apply now to check today's lowest interest rates!