How Are Car Loan Rates in Lafayette, IN Calculated?
Various factors influence your Indiana auto loan rate, Including your credit score, your income, the amount of the loan, the car's age, the down payment, and the length of the loan (your loan's term). A high debt-to-income ratio, low credit score, or purchasing an older car from a dealer in Lafayette could mean a higher interest rate. But what's so bad about a high interest rate? The higher your interest rate gets, the higher your monthly bill is and the more you spend over your loan’s term. Just one or two percent more could mean spending hundreds more on interest.
Can I Lower My Car Loan Rate in Lafayette, IN?
Online tools like our Interest Rate Estimator will give you an idea of what your rate might look like before you start applying for auto loans in Lafayette, IN. If you've plugged in your information and don't like the percentage you see, how can you lower?
The loan term is one factor you can control. Most auto loans in Lafayette 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. But longer terms are also likely to come with higher interest rates. If you can handle 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 see what might work for your budget.
If your credit is less than stellar, raising your score could decrease your interest rate. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and how you can quickly bring it up. Your credit score may take some more time and work, 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 get a lower rate. While lenders will look at the same information, each one might give you a different interest rate. Shopping around and comparing offers will help you find the best auto loan rate in Lafayette, IN — even without the best credit or income. You shouldn't automatically choose the first offer you get because there might be a better one just around the corner. Plus, some lenders leave room for negotiation, so you can take your offer from one lender to another to see if they're willing to give an even lower rate.
Find the Best Auto Loan Rates in Lafayette, IN with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Lafayette, 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 get the right deal. Fill out our secure online application, choose the loan that looks best to you, and head to your Lafayette dealer to purchase a new ride. Apply now to see today's lowest interest rates!