How Are Car Loan Rates in Hallowell, ME Calculated?
A handful of factors contribute to your Maine auto loan rate, including your income, your credits core, the loan amount, the age of the car, the down payment, and your loan's term (the length of the loan). A high debt-to-income ratio, low credit score, or purchasing an older car from a dealer in Hallowell could lead to a higher interest rate. But why worry about a high interest rate? The higher your interest rate gets, the higher your monthly payment becomes and the more you spend over your loan’s term. A difference of just one or two percent could mean you spend hundreds more on interest.
Is There a Way to Lower My Hallowell 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 Hallowell, ME. If you've supplied your information and are unhappy with the percentage you see, what can be done to lower it?
The loan term is one element you have a lot of control over. Most auto loans in Hallowell have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Many borrowers are drawn in by longer terms because the monthly payment is usually lower. But longer terms tend to also come with higher interest rates. If you can afford a bigger monthly payment, it's smart to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment with different interest rates and terms to help you figure out what might be affordable.
If you have less than ideal credit, improving your score could help lower your interest rate. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and how you can quickly bring it up. 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 Maine.
Taking some time to find the right lender can also help you achieve a lower rate. While lenders will use the same information, each one might give you a different interest rate. It's important to shop around and compare offers to find the best car loan rate in Hallowell, ME — even without the best credit or income. You shouldn't automatically choose the first offer you get because a better one could be right around the corner. Don't forget 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 Hallowell, ME with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Hallowell, ME regardless of your credit score and the type of car you're buying. You can see up to four loans at once so you can find the perfect loan. Simply complete our secure online application, choose the best loan for you, and purchase a new ride from your {City}} dealer. Apply now to see today's lowest interest rates!