How Are Naperville, IL Auto Loan Rates Determined?
A handful of factors influence your Illinois auto loan rate, Including your credit score, your income, the amount of the loan, 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 Naperville dealer could lead to a higher interest rate. But what's so bad about a high interest rate? The higher of an interest rate you have, the higher your monthly payment becomes 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 spending hundreds more overall.
Is There a Way to Lower My Naperville Car Loan Rate?
Online tools like our Interest Rate Estimator will give you an idea of what your rate might be before you begin applying for auto loans in Naperville, IL. If you've put in your information and are unhappy with the percentage you see, what steps can you take to lower it?
The loan term is one element you can control. Most auto loans in Naperville have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Longer terms will tempt many borrowers 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 wise to choose a shorter term. The Auto Payment Calculator shows what your monthly payments might look like based on different interest rates and terms to help you see what might work for your budget.
If your credit is less than stellar, improving 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. It may take some time and work to better your credit score, but it's worth it for those lower Illinois auto loan rates.
Waiting to find the right lender can also help you secure a lower rate. While lenders take the same information into consideration, you won't see the same interest rate from each one. It's important to shop around and compare offers to find the best car loan rate in Naperville, IL — even without a high income or credit score. You shouldn't go with the first offer you receive because there could be a better one right around the corner. Keep in mind some lenders allow for negotiation, so you can take an offer from one lender to the next to see if they'll beat the interest rate.
Find the Best Auto Loan Rates in Naperville, IL with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Naperville, IL no matter your credit score or the type of car you're buying. You can look at up to four loans at once so you can get the right deal. Fill out our secure online application, choose the loan that looks best to you, and visit your Naperville dealer to purchase a new car. Apply today to see the current lowest interest rates!