What Determines Your Auto Loan Rate in Franklin, IN?
A handful of factors affect your Indiana car loan interest rate, including your income, your credits core, the loan amount, 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 Franklin could result in a higher interest rate. But is a high interest rate so bad? The higher your interest rate gets, the higher your monthly bill is and the more you spend over the life of your loan. A difference of one or two percent might not seem like much, but it could mean spending hundreds more overall.
Can I Lower My Car Loan Rate in Franklin, IN?
With tools like our Interest Rate Estimator, you can get an idea of what your rate might be before you complete an application for a car loan in Franklin, IN. If you've filled out your information and aren't liking the percentage you see, what can be done to lower it?
The loan term is one thing you have total control over. Most auto loans in Franklin have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Many borrowers are drawn in by longer terms 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 smart to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment with different interest rates and terms to help you determine what might be affordable.
If your credit is far from great, improving 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 how you can quickly bring it up. It may take some effort and time to increase your credit score, but it's worth it to get those lower Indiana car loan rates.
Taking the time to hunt down the right lender can also help you achieve a lower rate. While lenders will use 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 Franklin, IN — 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 could be right around the corner. Plus, 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.
Use myAutoloan to Check the Best Auto Loan Rates in Franklin, IN
myAutoloan is committed to helping you find the lowest auto loan rates in Franklin, IN 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 get the right deal. Simply complete our secure online application, choose the loan that looks best to you, and visit your Franklin dealer to purchase a new car. Apply now to see today's lowest interest rates!