How Are Car Loan Rates in Indianapolis, IN Calculated?
Various factors impact your Indiana car loan 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 high debt-to-income ratio, poor credit score, or choosing an older vehicle at your Indianapolis dealership could mean 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 is and the more you spend over the term of your loan. Just one or two percent more could mean spending hundreds more overall.
How Do I Lower My Auto Loan Rate in Indianapolis, IN?
You can use tools like our Interest Rate Estimator to get a feel for what your rate could be before having to apply for a car loan in Indianapolis, IN. If you've supplied your information and are unhappy with the percentage you see, what can be done to lower it?
The loan term is one aspect you can control. Most auto loans in Indianapolis are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Many borrowers are drawn in by longer terms because they usually have a lower monthly payment. 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 payments might look like depending on different interest rates and terms to help you see what you can afford.
If your credit is far from great, boosting your score could decrease your interest rate. Our Guide to Better Credit for Auto Financing will help you understand what goes into a 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's worth it to get those lower Indiana car 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, each one might give you a different interest rate. You need to shop around and compare offers to find the best auto loan rate in Indianapolis, IN — even if you don't have the highest income or best credit. You shouldn't go with the first offer you receive because a better one could be right around the corner. Keep in mind some lenders leave room for negotiation, so you can take an offer from one lender to the next to see if they'll beat the interest rate.
Discover the Best Auto Loan Rates in Indianapolis, IN with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Indianapolis, IN regardless of your credit score and the type of car you're buying. You can see up to four loans at once so you can find the perfect loan. Fill out our simple and secure online application, choose the loan that looks best to you, and visit your Indianapolis dealer to purchase a new car. Apply now to check today's lowest interest rates!