How Are Ames, IA Auto Loan Rates Determined?
Many factors contribute to your Iowa car loan 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 Ames dealership could lead to a higher interest rate. But why worry about a high interest rate? The higher your interest rate, the higher your monthly bill is and the more you spend in total. A difference of one or two percent might not seem like much, but it could mean spending hundreds more on interest.
Is There a Way to Lower My Ames Car Loan Rate?
Using tools like our Interest Rate Estimator can help you get a feel for what your rate might look like before you start applying for auto loans in Ames, IA. 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 thing you have a lot of control over. Most auto loans in Ames have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Many borrowers take longer terms because they typically have a lower monthly payment. But longer terms tend to also come with higher interest rates. If you can afford a bigger monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator shows your possible monthly payment depending on different interest rates and terms to help you determine what might work for your budget.
If your credit is far from great, improving your score could lower your interest rate. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and which steps you can take to bring it up fast. Your credit score will take some effort and time to build, but it's worth it to get those lower Iowa car loan rates.
Putting effort into finding the right lender can also help you achieve a lower rate. While lenders take the same information into consideration, each one might give you a different interest rate. You need to compare offers and shop around for the best auto loan rate in Ames, IA — even if you don't have the highest income or best credit. You don't want to go with the first offer you receive because there might be a better one just around the corner. Don't forget some lenders are open to negotiation, so you can take an offer from one lender to the next to see if they'll beat the interest rate.
Use myAutoloan to Check the Best Auto Loan Rates in Ames, IA
myAutoloan wants to help you find the lowest auto loan rates in Ames, IA no matter your credit score or the type of car you're buying. We'll present you with up to four loans at once so you can find the right deal. Simply complete our secure online application, select the best loan for you, and head to your Ames dealer to purchase a new ride. Apply now to check today's lowest interest rates!