What Determines Your Auto Loan Rate in Alexandria, LA?
Several factors affect your Louisiana auto loan interest rate, including your credit score, the amount of the loan, 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 Alexandria dealership could mean a higher interest rate. But why is a high interest rate bad? The higher your interest rate gets, the more you pay each month and the more you spend over the life of your loan. A difference of one or two percent might not seem like much, but it could mean spending hundreds more overall.
Can I Lower My Car Loan Rate in Alexandria, LA?
You can use tools like our Interest Rate Estimator to get a feel for what your rate could be before you begin applying for auto loans in Alexandria, LA. If you've put in your information and aren't happy with the percentage you see, how can you lower?
The loan term is one aspect you can control. Most Alexandria auto loans are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Many borrowers are drawn in by longer terms because they typically have a lower monthly payment. However, a longer term also tends to come with a higher interest rate. If you can handle a higher monthly payment, it's smart 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 figure out what you might be able to afford.
If you have less than ideal credit, raising your score could decrease your interest rate. Use our Guide to Better Credit for Auto Financing to better understand what determines your credit score 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's all worth it for getting those lower auto loan rates in Louisiana.
Putting effort into finding the right lender can also help you secure a lower rate. While lenders take the same information into consideration, you won't see the same interest rate from each one. It's important to shop around and compare offers to find the best car loan rate in Alexandria, LA — even without a high income or credit score. You don't want to choose the first offer you get because a better one could be right around the corner. Don't forget some lenders allow for negotiation, so you can take an offer from one lender to another to see if they're willing to beat the interest rate.
See the Best Auto Loan Rates in Alexandria, LA with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Alexandria, LA 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 get the right deal. Simply complete our secure online application, choose the best loan for you, and head down to a dealer in Alexandria to purchase a new ride. Apply now to check today's lowest interest rates!