How Are Boone, IA Car Loan Rates Determined?
A handful of factors contribute to your Iowa car loan interest rate, Including your credit score, your income, the amount of the loan, the down payment, the age of the car, and your loan's term (the length of the loan). A high debt-to-income ratio, low credit score, or purchasing an older car from a dealer in Boone could lead to a higher interest rate. But is a high interest rate so bad? The higher your interest rate, the higher your monthly payment becomes and the more you spend over the term of your loan. Just one or two percent more could mean spending hundreds more overall.
Can I Lower My Car Loan Rate in Boone, IA?
Online tools like our Interest Rate Estimator will give you a feel for what your rate might look like before you begin applying for auto loans in Boone, IA. If you've put in your information and don't like the percentage you see, what can you do to lower it?
The loan term is one thing you can change on your own. Most Boone auto loans have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Longer terms attract many borrowers because they typically have a lower monthly payment. But longer terms are also likely to come with higher interest rates. If your budget allows for a higher monthly payment, it's better to choose a shorter term. The Auto Payment Calculator shows what your monthly payment might be depending on different interest rates and terms to help you determine what you can afford.
If you have less than ideal credit, increasing your score could decrease your interest rate. Our Guide to Better Credit for Auto Financing can help you understand where your credit score comes from and which steps you can take today to bring it up quickly. It may take some time and work to better your credit score, but it'll be worth it once you see those lower Iowa auto loan rates.
Taking some time to find the right lender can also help you secure a lower rate. While lenders will consider the same information, each one might give you a different interest rate. You need to compare offers and shop around for the best auto loan rate in Boone, IA — even if you don't have the highest income or best credit. You shouldn't go with the first offer you receive because there could be a better one right around the corner. Keep in mind some lenders will negotiate, so you can take your offer from one lender to another to see if they're willing to give an even lower rate.
Discover the Best Auto Loan Rates in Boone, IA with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Boone, IA regardless of what type of vehicle you're buying or your credit score. You can look at up to four loans at once so you can find the right deal. Simply complete our secure online application, pick the loan that works best for you, and visit your Boone dealer to purchase a new car. Apply today to see the current lowest interest rates!