What Determines Your Auto Loan Rate in Lake Charles, LA?
A handful of factors influence your Louisiana car loan interest rate, including your credit score, the amount of the loan, your income, 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 Lake Charles dealer could result in a higher interest rate. But is a high interest rate so bad? The higher your interest rate, the higher your monthly payment becomes and the more you spend in total. A difference of just one or two percent could mean spending hundreds more on interest.
How Can I Get a Lower Car Loan Rate in Lake Charles, LA?
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 Lake Charles, LA. If you've plugged in your information and don't like the percentage you see, what can you do to lower it?
The loan term is one factor you can control. Most car loans in Lake Charles 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 typically 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 wise to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment depending on different interest rates and terms to help you determine what you can afford.
If you have less than stellar credit, improving your score could bring your interest rate down. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score 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'll be worth it once you see those lower Louisiana auto loan rates.
Waiting to find the right lender can also help you get a lower rate. While lenders will look at 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 Lake Charles, LA — even if you don't have the best credit or income. You don't want to choose the first offer you get because there could be a better one right around the corner. Plus, 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.
Find the Best Auto Loan Rates in Lake Charles, LA with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Lake Charles, LA regardless of what type of vehicle you're buying or your credit score. We'll present you with up to four loans at once so you can find the best deal. Fill out our secure online application, choose the best loan for you, and head to your Lake Charles dealer to purchase a new ride. Apply today to see the current lowest interest rates!