What Determines Your Auto Loan Rate in Martinsville, IN?
Various factors contribute to your Indiana car loan interest rate, including the loan amount, your credit score, your income, the age of the car, the down payment, 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 Martinsville dealership could lead to a higher interest rate. But is a high interest rate so bad? The higher your interest rate is, the higher your monthly bill is and the more you spend over your loan’s term. A difference of one or two percent might not seem like much, but it could mean spending hundreds more on interest.
Can I Lower My Car Loan Rate in Martinsville, IN?
You can use tools like our Interest Rate Estimator to get a feel for what your rate could be before you start applying for auto loans in Martinsville, IN. If you've supplied your information and aren't liking the percentage you see, what steps can you take to lower it?
The loan term is one element you can control. Most Martinsville auto loans are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Longer terms will tempt many borrowers because they usually have a lower monthly payment. However, longer terms also tend to come with higher interest rates. If you can afford 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 decide what might work for your budget.
If you have less than ideal credit, increasing 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. 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.
Waiting to find the right lender can also help you secure a lower rate. While lenders will consider the same information, you won't see the same interest rate from each one. You need to shop around and compare offers to find the best auto loan rate in Martinsville, IN — even without the best credit or income. You shouldn't go with the first offer you receive because there might be a better one just around the corner. Don't forget some lenders allow for negotiation, so you can take an offer from one lender to the other to see if they can beat the interest rate.
Use myAutoloan to Check the Best Auto Loan Rates in Martinsville, IN
myAutoloan is dedicated to helping you find the lowest car loan rates in Martinsville, IN no matter your credit score or the type of car you're buying. We'll show you up to four loans at once so you can get the right deal. Complete our secure online application, choose the loan that looks best to you, and head down to a dealer in Martinsville to purchase a new ride. Don't wait to apply and check today's lowest interest rates!