How Are Car Loan Rates in Lafayette, LA Calculated?
A handful of factors contribute to your Louisiana auto loan rate, including your credit score, the amount of the loan, your income, the down payment, the age of the car, and your loan's term (the length of the loan). A low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Lafayette dealer could result in a higher interest rate. But why worry about a high interest rate? The higher your interest rate is, the higher your monthly bill is and the more you spend over the life of your loan. Just one or two percent more could mean spending hundreds more overall.
How Can I Get a Lower Car Loan Rate in Lafayette, 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 Lafayette, LA. If you've filled out your information and aren't happy with the percentage you see, what steps can you take to lower it?
The loan term is one thing you can change on your own. Most car loans in Lafayette are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Longer terms attract many borrowers because they usually mean a lower monthly payment. But longer terms tend to also come with higher interest rates. If you can afford a bigger monthly payment, it's better to choose a shorter term. The Auto Payment Calculator estimates what your monthly payment could be with different terms and interest rates to help you decide what might be affordable.
If your credit is less than stellar, raising your score could decrease your interest rate. Our Guide to Better Credit for Auto Financing can help you understand where your credit score comes from and which steps you can take to bring it up fast. Your credit score will take some effort and time to build, but it's all worth it for getting those lower auto loan rates in Louisiana.
Taking the time to hunt down the right lender can also help you achieve 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 Lafayette, LA — even without the best credit or income. You don't want to choose the first offer you get because there might be a better one just around the corner. Don't forget some lenders leave room for negotiation, so you can take an offer from one lender to the next to see if they'll beat the interest rate.
See the Best Auto Loan Rates in Lafayette, LA with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Lafayette, LA regardless of your credit score and 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. Complete our secure online application, choose the best loan for you, and head to your Lafayette dealer to purchase a new ride. Apply now to see today's lowest interest rates!