How Are Car Loan Rates in Elgin, IL Calculated?
Several factors affect your Illinois car loan interest rate, including your income, your credits core, the loan amount, the down payment, the age of the car, and your loan's term (the length of the loan). A low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Elgin dealer could lead to a higher interest rate. But what's so bad about a high interest rate? The higher your interest rate, the higher your monthly payment is and the more you spend in total. Just one or two percent more could mean spending hundreds more overall.
How Do I Lower My Auto Loan Rate in Elgin, IL?
With tools like our Interest Rate Estimator, you can get an idea of what your rate might look like before you complete an application for a car loan in Elgin, IL. 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 aspect you can control. Most auto loans in Elgin are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Many borrowers take 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, it's better to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment based on different interest rates and terms to help you determine what you might be able to afford.
If your credit is less than stellar, raising your score could help lower your interest rate. Use our Guide to Better Credit for Auto Financing to better understand what determines your credit score and which steps you can take to bring it up fast. Your credit score may take some more time and work, but it's worth it to get those lower Illinois car loan rates.
Taking the time to hunt down 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 compare offers and shop around for the best auto loan rate in Elgin, IL — even if you don't have the highest income or best credit. You shouldn't automatically choose the first offer you get because a better one might be waiting just 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.
Find the Best Auto Loan Rates in Elgin, IL with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Elgin, IL regardless of what type of vehicle you're buying or your credit score. You can see up to four loans at once so you can find the right deal. Fill out our simple and secure online application, pick the loan that works best for you, and visit your Elgin dealer to purchase a new car. Apply now to check today's lowest interest rates!