How Are Hammond, LA Auto Loan Rates Determined?
A handful of factors affect your Louisiana auto loan interest 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, poor credit score, or choosing an older vehicle at your Hammond dealership might lead to a higher interest rate. But why is a high interest rate bad? The higher of an interest rate you have, the more you pay each month and the more you spend in total. Just one or two percent more could mean you spend hundreds more on interest.
Can I Lower My Car Loan Rate in Hammond, LA?
With tools like our Interest Rate Estimator, you can get an idea of what your rate might be before you complete an application for a car loan in Hammond, LA. If you've filled out your information and are unhappy with the percentage you see, what can be done to lower it?
The loan term is one factor you can control. Most car loans in Hammond are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Many borrowers take longer terms because they usually have a lower monthly payment. However, a longer term also tends to come with a higher interest rate. If your budget allows for a higher monthly payment, it's smart to choose a shorter term. The Auto Payment Calculator shows what your monthly payments might look like with different interest rates and terms to help you figure out what you can afford.
If you have less than ideal credit, raising your score could help lower your interest rate. 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. Your credit score will take some effort and time to build, but it's worth it for those lower Louisiana auto loan rates.
Taking some time to find the right lender can also help you get a lower rate. While lenders will consider the same information, each one might give you a different interest rate. You need to shop around and compare offers to find the best auto loan rate in Hammond, LA — even without a high income or credit score. You don't want to go with the first offer you receive because a better one might be waiting just 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.
Use myAutoloan to Check the Best Auto Loan Rates in Hammond, LA
myAutoloan is here to help you get the lowest auto loan rates in Hammond, LA 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 best deal. Simply complete our secure online application, pick the loan that works best for you, and head to your Hammond dealer to purchase a new ride. Don't wait to apply and check today's lowest interest rates!