What Determines Your Auto Loan Rate in Davenport, IA?
A handful of factors affect your Iowa car loan interest rate, including the loan amount, your credit score, your income, 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 Davenport might lead to a higher interest rate. But why worry about a high interest rate? The higher of an interest rate you have, the higher your monthly bill is and the more you spend over the term of your loan. Even a rate one or two percent higher could mean spending hundreds more on interest.
Can I Lower My Car Loan Rate in Davenport, IA?
Using tools like our Interest Rate Estimator can help you get an idea of what your rate might look like before you start applying for auto loans in Davenport, IA. If you've plugged in your information and aren't liking the percentage you see, what can you do to lower it?
The loan term is one factor you have total control over. Most Davenport car loans have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Many borrowers take longer terms because they usually mean a lower monthly payment. But longer terms are also likely to come with higher interest rates. If you can handle a higher monthly payment, it's smart to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment with different interest rates and terms to help you figure out what you might be able to afford.
If your credit is less than stellar, improving your score could bring your interest rate down. Our Guide to Better Credit for Auto Financing can help you understand where your credit score comes from and the steps you can take now to raise it quickly. It may take some effort and time to increase your credit score, but it's worth it for those lower Iowa auto loan rates.
Taking some time to find the right lender can also help you snag a lower rate. While lenders will use 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 Davenport, 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 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.
Discover the Best Auto Loan Rates in Davenport, IA with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Davenport, IA no matter what type of car you're buying or your credit score. You can look at up to four loans at once so you can find the perfect loan. Complete our secure online application, select the best loan for you, and purchase a new ride from your {City}} dealer. Apply now to check today's lowest interest rates!