What Determines Your Auto Loan Rate in Cedar Rapids, IA?
Various factors impact your Iowa auto loan rate, including the loan amount, your credit score, your income, 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 Cedar Rapids could mean a higher interest rate. But why worry about a high interest rate? The higher your interest rate gets, the higher your monthly payment becomes and the more you spend in total. A difference of just one or two percent could mean spending hundreds more overall.
Can I Lower My Car Loan Rate in Cedar Rapids, IA?
Using tools like our Interest Rate Estimator can help you get a feel for what your rate could be before you begin applying for auto loans in Cedar Rapids, IA. If you've plugged in your information and aren't liking the percentage you see, what steps can you take to lower it?
The loan term is one aspect you have total control over. Most Cedar Rapids car 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 mean a lower monthly payment. However, a longer term also tends to come with a higher interest rate. If you can afford a bigger monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator estimates what your monthly payment could be with different interest rates and terms to help you see what you can afford.
If you have less than stellar credit, raising your score could bring your interest rate down. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and which steps you can take today to bring it up quickly. It may take some effort and time to increase your credit score, but it's worth it to get those lower Iowa car loan rates.
Putting effort into finding the right lender can also help you secure a lower rate. While lenders will look at the same information, you won't receive the same interest rate from each one. You need to shop around and compare offers to find the best auto loan rate in Cedar Rapids, IA — 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. Don't forget some lenders are open to negotiation, 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 Cedar Rapids, IA with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Cedar Rapids, IA regardless of what type of vehicle you're buying or your credit score. We'll show you up to four loans at once so you can find the right deal. Fill out our secure online application, select the best loan for you, and visit your Cedar Rapids dealer to purchase a new car. Apply now to check today's lowest interest rates!