What Determines Your Auto Loan Rate in Decatur, IN?
Various factors contribute to your Indiana auto loan interest rate, including your income, your credits core, the loan amount, the age of the car, the down payment, and your loan's term (the length of the loan). A poor credit score, low income, or buying an older vehicle from a dealer in Decatur might lead to a higher interest rate. But what's so bad about a high interest rate? The higher your interest rate gets, the higher your monthly payment is and the more you spend in total. A difference of just one or two percent could mean spending hundreds more on interest.
How Do I Get a Lower Car Loan Interest in Decatur, IN?
You can use tools like our Interest Rate Estimator to get an idea of what your rate might look like before you begin applying for auto loans in Decatur, IN. If you've put in your information and aren't liking the percentage you see, what steps can you take to lower it?
The loan term is one factor you have a lot of control over. Most car loans in Decatur have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Longer terms will tempt many borrowers because the monthly payment is usually lower. However, a longer term also tends to come with a higher interest rate. If you can handle a higher monthly payment, it's better to choose a shorter term. The Auto Payment Calculator shows what your monthly payment might be with different terms and interest rates to help you decide what might work for your budget.
If your credit is far from great, raising your score could lower your interest rate. Our Guide to Better Credit for Auto Financing will help you understand what goes into a credit score 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 worth it for those lower Indiana auto loan rates.
Taking some time to find the right lender can also help you snag a lower rate. While lenders will consider the same information, you'll likely receive a different interest rate from each one. It's important to shop around and compare offers to find the best car loan rate in Decatur, IN — even without a high income or credit score. You don't want to choose the first offer you get because there could be a better one right around the corner. Keep in mind some lenders will negotiate, so you can take an offer from one lender to another to see if they're willing to beat the interest rate.
Discover the Best Auto Loan Rates in Decatur, IN with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Decatur, IN no matter what type of car you're buying or your credit score. We'll show you up to four loans at once so you can get the right deal. Fill out our simple and secure online application, select the best loan for you, and visit your Decatur dealer to purchase a new car. Apply today to see the current lowest interest rates!