What Determines Your Auto Loan Rate in Elkhart, IN?
Several factors contribute to your Indiana car loan interest 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 poor credit score, low income, or buying an older vehicle from a dealer in Elkhart could result in a higher interest rate. But why is a high interest rate bad? The higher your interest rate, the more you pay each month and the more you spend in total. A difference of just one or two percent could mean you spend hundreds more on interest.
How Can I Get a Lower Car Loan Rate in Elkhart, IN?
Using tools like our Interest Rate Estimator can help you get a feel for what your rate could be before you begin applying for auto loans in Elkhart, IN. If you've put in your information and aren't liking the percentage you see, what can you do to lower it?
The loan term is one aspect you have a lot of control over. Most Elkhart car loans have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Longer terms attract many borrowers because the monthly payment is usually lower. However, longer terms also tend to come with higher interest rates. If your budget allows for a higher monthly payment, it's wise to choose a shorter term. The Auto Payment Calculator estimates what your monthly payment could be depending on different interest rates and terms to help you decide what might be affordable.
If your credit is far from great, increasing your score could decrease 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 today to bring it up quickly. Your credit score will take some effort and time to build, but it'll be worth it once you see those lower Indiana auto loan rates.
Taking some time to find the right lender can also help you secure a lower rate. While lenders will use the same information, each one might give you a different interest rate. You need to compare offers and shop around for the best auto loan rate in Elkhart, IN — even without a high income or credit score. You shouldn't go with the first offer you receive because there might be a better one just around the corner. And, some lenders are open to negotiation, so you can take an offer from one lender to another to see if they're willing to beat the interest rate.
See the Best Auto Loan Rates in Elkhart, IN with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Elkhart, 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 find the right deal. Fill out our secure online application, choose the best loan for you, and head to your Elkhart dealer to purchase a new ride. Apply now to see today's lowest interest rates!