What Determines Your Auto Loan Rate in Houma, LA?
Many factors influence your Louisiana car loan interest rate, Including your credit score, your income, the amount of the loan, the down payment, your loan's term (the length of the loan), and the car's age. A low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Houma dealer could lead to a higher interest rate. But what's so bad about a high interest rate? The higher your interest rate gets, the more you pay each month and the more you spend in total. Even a rate one or two percent higher could mean spending hundreds more on interest.
Is There a Way to Lower My Houma Car Loan Rate?
You can use tools like our Interest Rate Estimator to get an idea of what your rate might be before you begin applying for auto loans in Houma, LA. If you've plugged in your information and aren't happy with the percentage you see, what steps can you take to lower it?
The loan term is one aspect you can control. Most auto loans in Houma have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Many borrowers are drawn in by longer terms because they usually mean a lower monthly payment. But longer terms tend to also come with higher interest rates. If your budget allows for a higher monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator shows what your monthly payments might look like with different interest rates and terms to help you figure out what might be affordable.
If you have less than stellar credit, increasing your score could help lower your interest rate. Our Guide to Better Credit for Auto Financing will help you understand what goes into a credit score and how you can quickly bring it up. Your credit score may take some more time and work, but it'll be worth it once you see those lower Louisiana auto loan rates.
Taking the time to hunt down the right lender can also help you get a lower rate. While lenders take the same information into consideration, 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 Houma, LA — even without a high income or credit score. You don't want to go with the first offer you receive because there might be a better one just around the corner. Keep in mind some lenders are open to negotiation, so you can take an offer from one lender to another to see if they're willing to beat the interest rate.
Discover the Best Auto Loan Rates in Houma, LA with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Houma, LA no matter your credit score or the type of car you're buying. You can see up to four loans at once so you can find the best deal. Fill out our secure online application, pick the loan that works best for you, and head down to a dealer in Houma to purchase a new ride. Apply today to see the current lowest interest rates!