How Are Car Loan Rates in Dixon, IL Calculated?
Several factors impact your Illinois auto loan rate, including your credit score, the amount of the loan, your income, the down payment, your loan's term (the length of the loan), and the car's age. A high debt-to-income ratio, low credit score, or purchasing an older car from a dealer in Dixon could mean a higher interest rate. But why worry about a high interest rate? The higher your interest rate gets, the higher your monthly payment is and the more you spend over the term of your loan. Just one or two percent more could mean spending hundreds more on interest.
How Do I Lower My Auto Loan Rate in Dixon, IL?
Using tools like our Interest Rate Estimator can help you get an idea of what your rate might be before you complete an application for a car loan in Dixon, IL. If you've put in your information and don't like the percentage you see, what can you do to lower it?
The loan term is one thing you have a lot of control over. Most car loans in Dixon have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Many borrowers take 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 bigger monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator estimates what your monthly payment could be with different interest rates and terms to help you determine what you can afford.
If you have less than ideal credit, improving your score could lower 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. Your credit score may take some more time and work, but it'll be worth it once you see those lower Illinois auto loan rates.
Taking some time to find the right lender can also help you get a lower rate. While lenders will consider the same information, you'll likely receive a different interest rate from each one. You need to shop around and compare offers to find the best auto loan rate in Dixon, IL — even if you don't have the best credit or income. You don't want to go with the first offer you receive because a better one might be waiting just around the corner. Keep in mind some lenders will negotiate, so you can take your offer from one lender to another to see if they're willing to give an even lower rate.
Use myAutoloan to Check the Best Auto Loan Rates in Dixon, IL
myAutoloan is here to help you get the lowest auto loan rates in Dixon, IL no matter your credit score or the type of car you're buying. You can see up to four loans at once so you can find the right deal. Complete our secure online application, select the best loan for you, and visit your Dixon dealer to purchase a new car. Apply now to see today's lowest interest rates!