What Determines Your Auto Loan Rate in New Orleans, LA?
Several factors contribute to your Louisiana car loan interest rate, including your income, your credits core, the loan amount, 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 New Orleans dealer might lead to a higher interest rate. But why is a high interest rate bad? The higher of an interest rate you have, the higher your monthly bill is and the more you spend over the life of your loan. A difference of just one or two percent could mean spending hundreds more overall.
How Do I Lower My Auto Loan Rate in New Orleans, LA?
Using tools like our Interest Rate Estimator can help you get an idea of what your rate might be before you start applying for auto loans in New Orleans, LA. If you've plugged in your information and are unhappy with the percentage you see, what can be done to lower it?
The loan term is one thing you have a lot of control over. Most New Orleans auto loans have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Longer terms attract many borrowers because they typically have a lower monthly payment. However, longer terms also tend to come with higher interest rates. If you can afford a higher monthly payment, it's wise to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment with different interest rates and terms to help you see what you might be able to afford.
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 the steps you can take now to raise it quickly. Your credit score may take some more time and work, but it's worth it for those lower Louisiana auto loan rates.
Putting effort into finding the right lender can also help you achieve a lower rate. While lenders will look at the same information, you won't receive the same interest rate from each one. It's important to shop around and compare offers to find the best car loan rate in New Orleans, LA — even if you don't have the best credit or income. You shouldn't go with the first offer you receive because there could be a better one right around the corner. Plus, some lenders are open to negotiation, so you can take an offer from one lender to the other to see if they can beat the interest rate.
Find the Best Auto Loan Rates in New Orleans, LA with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in New Orleans, 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 get the right deal. Fill out our simple and secure online application, choose the best loan for you, and head down to a dealer in New Orleans to purchase a new ride. Apply today to see the current lowest interest rates!